Fight disinformation: Sign up for the free Mother Jones Daily newsletter and follow the news that matters.

Hey, it’s Texas Miracle time again! The latest analysis comes from Goldman Sachs, which concludes that Texas is indeed a positive outlier when it comes to employment. In the chart on the right, where the gray blob represents the normal range of state employment, Texas is the gold line just above the normal range. That’s good news for Texas, but sadly, it’s where the good news stops for Rick Perry’s claim to economic superstardom. The report concludes that three factors are overwhelmingly responsible for good employment performance over the past three years:

  • Lack of a housing bubble. Texas really does have something to teach us on this score — namely that sensible government regulation of the mortgage market is a pretty good idea — but this is not exactly something Perry is eager to preach about. (And he wasn’t responsible for it anyway.)
  • An oil industry. ‘Nuff said. Lucky is lucky.
  • Lots of high-end services and technology. Actually, I suspect Texas has done fairly well on this score over the past decade, but it’s still not a leader of the pack. Texas-wise, housing and oil are the big story here.

And what wasn’t responsible for strong employment performance? Here’s the list:

  • State income tax rates
  • State property tax rates
  • State spending as a share of the economy

Goldman analyst Zach Pandl’s conclusion:

For the national economy we see two main lessons. First, because housing and mortgage credit are central to the weakness around the country, these issues should probably continue to receive attention from policymakers. Second, because the outperformance of a few states is closely related to natural resource exposure it is not easily replicable elsewhere.

Roger that. Fix the housing mess and — well, that’s about it, unless we suddenly discover oil in Arizona and Florida. Since that’s not likely, how about if we just focus on the housing mess instead?

GREAT JOURNALISM, SLOW FUNDRAISING

Our team has been on fire lately—publishing sweeping, one-of-a-kind investigations, ambitious, groundbreaking projects, and even releasing “the holy shit documentary of the year.” And that’s on top of protecting free and fair elections and standing up to bullies and BS when others in the media don’t.

Yet, we just came up pretty short on our first big fundraising campaign since Mother Jones and the Center for Investigative Reporting joined forces.

So, two things:

1) If you value the journalism we do but haven’t pitched in over the last few months, please consider doing so now—we urgently need a lot of help to make up for lost ground.

2) If you’re not ready to donate but you’re interested enough in our work to be reading this, please consider signing up for our free Mother Jones Daily newsletter to get to know us and our reporting better. Maybe once you do, you’ll see it’s something worth supporting.

payment methods

GREAT JOURNALISM, SLOW FUNDRAISING

Our team has been on fire lately—publishing sweeping, one-of-a-kind investigations, ambitious, groundbreaking projects, and even releasing “the holy shit documentary of the year.” And that’s on top of protecting free and fair elections and standing up to bullies and BS when others in the media don’t.

Yet, we just came up pretty short on our first big fundraising campaign since Mother Jones and the Center for Investigative Reporting joined forces.

So, two things:

1) If you value the journalism we do but haven’t pitched in over the last few months, please consider doing so now—we urgently need a lot of help to make up for lost ground.

2) If you’re not ready to donate but you’re interested enough in our work to be reading this, please consider signing up for our free Mother Jones Daily newsletter to get to know us and our reporting better. Maybe once you do, you’ll see it’s something worth supporting.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate