First off, a confession: I am a Texas native. I estimate I’ve spent about one-fourth of my life there, and my family bonds to Texas run strong and deep, ever since my great-great-grandfather and his brothers were run out of Arkansas by Federal marshals (my family called them “carpetbaggers” and “Northern aggressors”) after the Civil War.
So I have a keen interest in Texas politics, and the Texas economy, even though it has been 25 years since I last lived there.
Paul Krugman has written a column which is relevant to some of the discussion we’ve been having here this past week. I know Krugman is a polarizing figure, but he is a Nobel Laureate and as such his ideas deserve discussion, I believe.
I will do my best to summarize his thesis in three sentences after the jump.
Texas, like most other states, is in a deep economic hole. Because the legislature meets every two years, the true impact of the current Great Recession was not seen in the previous budget, but now the chickens have come home to roost. Despite a relatively robust economy, (dare we say) liberal economic policies (particularly related to housing), and Draconian spending cuts, the economy is still in trouble.
- Paul Krugman: Don’t Believe Texas’ Economic ‘Miracle’ (huffingtonpost.com)
- KRUGMAN: Texas Proves It — The Republican Dream Of No Regulation, Low Taxes, And Balanced Budgets Is A Crock (businessinsider.com)
- Krugman Debunks the “Texas Miracle” (firedoglake.com)
- Texas’s Busted Budget Shows Failure of GOP Theory (newser.com)
- Krugman vs. the Whippersnappers! Immigration and Inequality (newsweek.com)
- Krugman on the ‘Texas miracle’ (americablog.com)