A recent Texas Public Policy Foundation report entitled “How Big Government Hurts the Economy” by Dr. Arthur B. Laffer, Chuck DeVore, Stephen Moore, and Nicholas Drinkwater expounds on the remarkable growth in economic prosperity and job creation in a limited government state-Texas-compared with a big government state-California.
The table below clearly shows Texas is doing something right.
During the 2001-2011 period, economic prosperity blossomed from the Texas model-limited government spending, no income tax, and low regulations-incentivizing people to move to the Lone Star State and away from California, where a host of polar opposite policies were implemented. If you consider the most recent state employment data, California’s unemployment rate of 8.9 percent tells the story of a depressed labor market that remains substantially subdued compared with the unemployment rate of 6.4 percent in Texas.
Bottom line: Instead of smothering the private sector with excessive government intervention, the Texas model provides a guide other states and Washington, D.C. should replicate.
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