By Maxine Shapiro, KERA 90.1 Commentator
Dallas, TX – The diversification of industries, favorable government policies and a relatively low cost of living have kept Texas growing faster than the national average. So what happened? I'm Maxine Shapiro with KERA Marketplace Middays. Yesterday the Federal Reserve Board of Dallas released the latest "Southwest Economy" - a publication they produce every other month - on the Southwest economy. This issue contains the four very funny titled articles, one of them being The Unsinkable Texas Economy Takes on Water. It's good to see the Dallas Fed has a sense of humor. They need one. Based on their calculations, so do we.
In pointing out just how unsinkable we were, author and economist Fiona Sigalla refers to the fact that every year since the 1986 oil bust, Texas employment has increased. State laws made it easy for businesses to start and grow. Not to mention, as a-right-to-work state less union interference. And the cost of living was, and still is, quite favorable. As Ms. Sigalla points out, Texas "had a long way to slow before entering" into a recession.
It's here.
If I may quote Ms. Sigalla, "There are several indications that economic conditions are likely to worsen before they improve. The U.S. economy, Mexican economy, construction activity, and the high-technology and energy industries have all been pillars of strength for the region but are now languishing. One or more of these sectors will need to recover before Texas economic activity picks up." Unquote.
Adding more holes to this sinking ship, Texas exports fell twenty-five percent since August 2000. This is just a little too pessimistic for my liking. We?re the 2nd largest exporter in the country.
Ms. Sagalla summarizes by saying "at worst a recession is likely to be less than half as bad as the recessions of the 1980s." That's actually comforting. In fact for those of us who can look back at the 80s, I believe celebration might in order. For KERA Marketplace Midday, I'm Maxine Shapiro.
Marketplace Midday Reports air on KERA 90.1 Monday - Friday at 1:04 PM.