Rap the Economists

Texas: Variation and Consequences of States' Policies

The eight states with no state income tax grew 18% in the last decade. The other states (including the District of Columbia) grew just 8%.

The 22 states with right-to-work laws grew 15% in the last decade. The other states grew just 6%.

The 16 states where collective bargaining with public employees is not required grew 15% in the last decade. The other states grew 7%. …

Texas’ economy has diversified far beyond petroleum, with booming high-tech centers, major corporate headquarters and thriving small businesses. It has attracted hundreds of thousands of Americans and immigrants, high-skill as well as low-skill. Its wide open spaces made for low housing costs, which protected it against the housing bubble and bust that has slowed growth in Phoenix and Las Vegas.

The states, said Justice Brandeis, are laboratories of reform. The 2010 census tells us whose experiment worked best. It’s the state with the same name as the county that’s the center of the nation’s population: Texas.

Source: Michael Barone
Hat Tip: Ace of Spade and PjTatler