AUSTIN –  The Texas Public Policy Foundation released a paper today by Center for Fiscal Policy Economist Vance Ginn, Ph.D. on the economic freedom and individual prosperity supported by the Texas model compared with other large states. The paper, The Texas Model Supports Prosperity: A Labor Market Comparison, examines data in Texas, California, New York, and Florida and U.S. averages that show the limited government approach works best.  

"At a time when election season is picking up at the presidential, state, and local levels, the question politicians and voters are asking: what model provides the most prosperity?” said Ginn. “After comparing economic and labor market measures among California, Texas, Florida, and New York—the largest four states—and U.S. averages during the last 15 years, the evidence is clear: the Texas model of limited government best supports prosperity.
“The dwindling economic freedom of the U.S. from 3rd in 2000 to 16th according to the Fraser Institute has contributed to lackluster economic growth and job creation. Texas, however, has seen its economic freedom increase from 3rd to 1st among the 50 states. This improvement was not an accident as Texas kept taxes low, never enacted a personal income tax, and passed sensible regulations, which collectively let individuals best decide their future instead of the government.
“This Texas model helped create 80 percent of all civilian jobs in the U.S. from the start of the last recession in December 2007 to December 2014. Though critics often shrug these off as low-paying jobs, the inflation-adjusted private pay was 67 percent higher than the U.S. average since 2000. Despite the rhetoric about income inequality, the data show that Texas has had a more equal distribution of income since 2000 with fewer redistributionary policies than other large states.
“No matter how you slice it, the Texas model is one that supports prosperity. Even with this success, there is still much more that the Lone Star State must do to enhance this success. Regardless, those in D.C. and nationwide should consider similar limited government approaches to keep the American dream alive.”

To read the full report, visit:

Vance Ginn, Ph.D., is an Economist in the Center for Fiscal Policy at the Texas Public Policy Foundation. 

The Texas Public Policy Foundation is a non-profit, free-market research institute based in Austin, Texas.

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