Friday, April 8, 2011

Schadenfreude

During the recession of the last few years, Texas has seen some success compared to many other states. We've created more jobs than any other state in recent years, and our unemployment rate has been well below the national average of approximately 9%. We've also kept taxes lower than most. But all of these benefits may have attracted more people than Texas' infrastructure can handle. While we've created the most jobs, the state's population has grown by 4.3 million in the last decade, creating the need for more jobs than we could ever fill. As a result, unemployment has risen to 8.3%, and we're starting to see budget cuts that could seriously harm things like education and healthcare. Texas' budget was already thrifty; geared more toward growth and fiscal discipline than the aforementioned social issues. While this attitude has worked for quite some time, we may need to restructure to end this dilemma. If this cycle continues, the state will no longer be able to afford its low tax rate due to unemployment, and the education cuts certainly won't help this problem.

4 comments:

  1. I believe the illegal immigration issue has at least a small part to do with the increase in population. More and more people are coming across the border with no jobs and are taking advantage of the systems put in place to benefit our citizens. If immigration is not controlled it will affect our entire public school system as well as the unemployment rate. The increase in population due to illegals means more kids in the public school system, so eventually there will be too many kids in the system and not enough money to support them.

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  2. Texas has always been an incredibly popular state because of its low taxes. But like Zj said, the illegal immigration issue has a significant role in the rising population of our home state. With the population rising faster than jobs are being created, you can only expect to see the unemployment rate rise.

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  3. As Zach suggested we will see significant increases in unemployment rates as long as our borders are so easily breached by our neighbors to the south. We will also continue to have increases in our taxes and medical cost to cover the expectant mother that crosses the border just to have her child. For every new job Texas creates for its current citizens, 2 or 3 immigrants cross the border that need jobs too.

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  4. If we were to look at Texas as a product on the market, it would be in disequilibrium due to the fact that demand is greater than supply. Based on how well Texas has been dealing with the current economic status of our country, we are far more successful than the majority of other states in terms of our job market and abilities to keep taxes relatively low. That being said, Texas is a much more desirable place to live than many other states, and has become evident due to the recent population increase. Eventually, Texas will have to accommodate these hoards of people by shifting some of their economic focuses to new problems that are introduced with the sudden increase of population. In the long run, Texas will reach equilibrium for a short, short time, and then eventually (because nothing good can last in the economic world) Texas will reach the same status as the majority of states, and only then will we see a decrease in population again. Then, the cycle will probably start all over again, only now with different economic standards.

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