Thursday, August 5, 2010

Texas Reigns Without Keynesian Policies

The Website offers a story here about the Texas economy and how it has weathered the financial storm of 2008 and even thrived. Low taxes, a legislative environment that is not hostile to business and a laissez-faire approach to development have all been hallmarks of the success. The author's final bullet point describes the atmosphere here:

4. Something About Texas
Maybe it's the lack of a state income or capital gains tax. Or the dearth of union workers. Or the plentiful labor supply on the border of Mexico, or the lower wages, or the stable and lean regulations. There's something about Texas that makes it the most popular place for business to do its business, as CEO Magazine and CNBC both found the last year. As Brooke Rollins, president of the Texas Public Policy Foundation, told me: "Our research shows that the more tax incentives and less regulation you have, and the less likely businesses are to get sued, the more likely it is they'll want to come and prosper in your state."

So those are the policy prescriptions other states need to revive their economies. You would think Texas would be receiving elected officials from other states, to see how it's done.

All of those characteristics of the Texas economy stand as 180-degree opposite prescriptions to the Keynesian and authoritarian prescriptions in vogue with the Obama administration and the Democrats in Congress.

Texas is just doing what it has always done throughout its history -- let people be. That's what has attracted people who were imbued with the democratic spirit to Texas since the 1820's and even more so after Texas gained its independence from Mexico in 1836. Once, America was the last bastion of freedom in the world, where people flocked to opportunity. Now it seems to be only Texas.

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