Showing posts with label Texas Miracle. Show all posts
Showing posts with label Texas Miracle. Show all posts

Monday, August 29, 2011

Rick’s Perry’s Tall Tales of Texas


by MICHAEL WINSHIP

Although born and raised and raised in a small town in the Finger Lakes region of New York, I’m the hybrid child of an upstate NY father and a mother from Texas — they met at Fort Hood (then Camp Hood) during World War II. And you thought different species couldn’t mate.


As a result, we were the only kids on the block who said, “Y’all,” or had relatives named Bubba, Vade, Hoyt and Cleburne. My mother’s father was known in our family as Granddaddy Lloyd. CARE packages of unshelled pecans and Frito-Lay products (then largely unknown above the Mason-Dixon Line) would arrive at Christmastime. And among the books in our house was a buff-covered, dog-eared paperback titled Tall Tales of Texas.


I flipped through it over and over. Inside were wild and woolly stories of the outlaw Sam Bass, frontiersman and Texas Ranger Bigfoot Wallace, Davy Crockett at the Alamo. Even taller were tales of Pecos Bill, with his lasso made from a live rattlesnake, the toughest cowboy in the world; and his wife Slue-Foot Sue, riding down the Rio Grande on the back of a giant catfish.


So, courtesy of some Lone Star DNA and basic reading comprehension skills, I think I know a Texas tall tale when I hear one, and presidential candidate and Texas Governor Rick Perry’s tales of “the Texas miracle” are as tall as they come.


Between December 2000 and December 2010, the state did have a net gain of 907,000 jobs, more than half the 1.6 million new jobs nationwide during that same period. But a lot of the state’s success in job creation looks more like dumb luck than evidence of ole Pecos Perry’s political prowess or expertise in governance. “It’s not that the emperor has no clothes,” Dan Hamermesh, an economics professor at the University of Texas, told the website AOL Jobs. “But he’s got little more than a fig leaf over his crotch. It is a true fact, but he had nothing to do with it.”

Perry points to deregulation and low taxes, including an incentive program called the Texas Enterprise Fund, said to have created 58,000 jobs, but there were many factors largely beyond his control, including increased trade between the United States and Mexico and the high price of gasoline that pumped revenue into the state, accompanied by new technologies for oil and gas extraction. In the August 15 New York Times, Clifford Krauss reported, “The oil and gas industry now delivers roughly $325 billion a year to the state, directly and indirectly. It brings in $13 billion in state tax receipts, or roughly 40 percent of the total, financing up to 20 percent of the state budget.”

What’s more, a lot of the increase has been funded — say it ain’t so, Pecos! — by federal largesse, including President Obama’s economic stimulus. In the last ten years, federal spending in the state has more than doubled to over $200 billion a year (thanks in large part to NASA and the many military installations in the state, including the aforementioned Fort Hood, one of the world’s largest military bases and the biggest single employer in Texas).


Of all the US government jobs added in this country between 2007 and 2010, 47 percent of them were in Texas. According to Jared Bernstein, former economic adviser to Joe Biden, “Texas employment wasn’t down much at all in these years, as the state lost only 53,000 jobs. But looming behind that number are large losses in the private sector (down 178,000) and large gains (up 125,000) in government jobs.” Which shows, Bernstein goes on, that Texas has followed “a traditional Keynesian game plan: as the private sector contracts, turn to the public sector to temporarily make up part of the difference.”


In 2009, Governor Perry made a show of rejecting $556 million in federal funds for unemployment, saying there were too many strings attached. In fact, that money was equal to only two percent of the more than $20 billion in stimulus money Texas did accept, including cash used to cover 97 percent of the state budget’s shortfall for 2010, according to the National Conference of State Legislatures.

This, in spite of GOP attacks on the public sector, Perry’s claim that the stimulus was failed and misguided and the pledge in the announcement of his presidential candidacy that he would “work every day to make Washington, DC, as inconsequential in your lives as I can.”


As the August 20 Washington Post noted, “The significant role of government in Texas’ relative prosperity stands in stark contrast to the ‘go-it-alone’ image cultivated by Perry, who credits a lack of government interference for fostering a business-friendly environment in Texas.”

For those like Governor Perry who brag about being no-nonsense, freedom-loving cowpokes, it’s a delusion that goes all the way back to the early settlement of the American West. As Patricia Nelson Limerick writes in her seminal history The Legacy of Conquest, “At any period in Western history, the rhetoric of Western independence was best taken with many grains of salt.” Whether it was fighting Indians or gaining access to public grazing lands, the federal government has always been integral. “Nothing so undermines the Western claim to a tradition of independence,” she writes, “as this matter of federal support to Western development…

“And yet humans have a well-established capacity to meet facts of life with disbelief. In a region where human interdependence has been self-evident, Westerners have woven a net of denial.” Sounds familiar.


Accompanying Governor Perry’s denial is cronyism and patronage, both good ole boy-style and corporate (of the $102 million in campaign contributions raised for his gubernatorial races, Katrina vanden Heuvel wrote, half came “from just 204 sources,” and the
 Los Angeles Times reports, “Nearly half of those mega-donors received hefty business contracts, tax breaks or appointments under Perry.”)


So, too, with greed comes hubris and shortsightedness. The Times‘ Krauss reported, “Critics, among them Democrats… have long complained that the state’s economic health came at a steep price: a long-term hollowing out of its prospects because of deep cuts to education spending, low rates of investment in research and development, and a disparity in the job market that confines many blacks and Hispanics to minimum-wage jobs without health insurance.”

A report from the policy research and advocacy group Demos and the Austin-based Center for Public Policy Priorities notes “27 percent of Texas workers lack health insurance compared to 17 percent nationally. The ranks of the uninsured have grown steadily as access to employer-sponsored health insurance has declined… Fewer than half (48 percent) of the state’s workers have access to a retirement plan at work, a figure that has plummeted since reaching a high of 61 percent in 2000.”


Over the past twenty years, college costs in Texas have quadrupled, with the steepest jump occurring since tuition was deregulated by the state in 2003. Former first lady Barbara Bush observed in a February op-ed that the state ranks 49th in verbal SAT scores, 47th in literacy and 46th in average math SAT scores: “We rank 36th in the nation in high school graduation rates. An estimated 3.8 million Texans do not have a high school diploma… the United Way estimates that the price tag for dropouts to Texas taxpayers in $9.6 billion every year.” But the state’s latest budget cut $4 billion from public schools.


A recent, four part series on Perry’s Texas from a team at the Houston Chronicle reports, “After a decade of Perry-style frugality the Texas welcome mat is growing increasingly threadbare as the state struggles to accommodate a booming, young populace hoping to travel its roads, get educated in its schools, drink its water and access its health care system. During Perry’s tenure the state has postponed investment or turned to debt to finance crucial infrastructure needs, experts say.”

The average urban Texan loses a week a year to traffic delays on the state’s “overburdened” highway system. While Perry boasts of luring thousands of doctors to the state, “lawmakers this year cut $805 million from doctors serving Medicaid patients” and “postponed $4 billion in Medicaid costs for payment in the next payment cycle.” Texas is 48th out of 50 states in the number of physicians per 100,000 residents.


Perry doubts climate change is real, yet, “As Texas endures its most severe one-year drought in its history, state leaders have identified $53 billion in state investments needed to expand water capacity by 2060 but have not resolved how to pay for it. Unless Texas increases its water resources, experts say 83% of Texans will not have an adequate supply of water in times of drought.” Perry issued a proclamation urging Texans to pray for rain.


With more bad news ahead, stagnant wages and an explosion in population and the labor force that now has unemployment advancing much faster that Perry’s touted job growth, “the Texas miracle” is heading into a ditch.


Which brings to mind another tall tale, the old joke about the Texan who says to an Eastern visitor, “Yessir, I can drive across my ranch all day and all night and still not get to the other end.” To which the visitor replies, “I know what you mean. I have a car like that, too.”


Why Does Rick Perry Hate Old, Poor People? 

Monday, August 15, 2011

The Texas Unmiracle

The text overlay isn't very clear. It says:  READ MY LIPS: NO NEW TEXANS!


August 14, 2011 | New York Times
By PAUL KRUGMAN

As expected, Rick Perry, the governor of Texas, has announced that he is running for president. And we already know what his campaign will be about: faith in miracles.

Some of these miracles will involve things that you’re liable to read in the Bible. But if he wins the Republican nomination, his campaign will probably center on a more secular theme: the alleged economic miracle in Texas, which, it’s often asserted, sailed through the Great Recession almost unscathed thanks to conservative economic policies. And Mr. Perry will claim that he can restore prosperity to America by applying the same policies at a national level.

So what you need to know is that the Texas miracle is a myth, and more broadly that Texan experience offers no useful lessons on how to restore national full employment.

It’s true that Texas entered recession a bit later than the rest of America, mainly because the state’s still energy-heavy economy was buoyed by high oil prices through the first half of 2008. Also, Texas was spared the worst of the housing crisis, partly because it turns out to have surprisingly strict regulation of mortgage lending.

Despite all that, however, from mid-2008 onward unemployment soared in Texas, just as it did almost everywhere else.

In June 2011, the Texas unemployment rate was 8.2 percent. That was less than unemployment in collapsed-bubble states like California and Florida, but it was slightly higher than the unemployment rate in New York, and significantly higher than the rate in Massachusetts. By the way, one in four Texans lacks health insurance, the highest proportion in the nation, thanks largely to the state’s small-government approach. Meanwhile, Massachusetts has near-universal coverage thanks to health reform very similar to the “job-killing” Affordable Care Act.

So where does the notion of a Texas miracle come from? Mainly from widespread misunderstanding of the economic effects of population growth.

For this much is true about Texas: It has, for many decades, had much faster population growth than the rest of America — about twice as fast since 1990. Several factors underlie this rapid population growth: a high birth rate, immigration from Mexico, and inward migration of Americans from other states, who are attracted to Texas by its warm weather and low cost of living, low housing costs in particular.

And just to be clear, there’s nothing wrong with a low cost of living. In particular, there’s a good case to be made that zoning policies in many states unnecessarily restrict the supply of housing, and that this is one area where Texas does in fact do something right.

But what does population growth have to do with job growth? Well, the high rate of population growth translates into above-average job growth through a couple of channels. Many of the people moving to Texas — retirees in search of warm winters, middle-class Mexicans in search of a safer life — bring purchasing power that leads to greater local employment. At the same time, the rapid growth in the Texas work force keeps wages low — almost 10 percent of Texan workers earn the minimum wage or less, well above the national average — and these low wages give corporations an incentive to move production to the Lone Star State.

So Texas tends, in good years and bad, to have higher job growth than the rest of America. But it needs lots of new jobs just to keep up with its rising population — and as those unemployment comparisons show, recent employment growth has fallen well short of what’s needed.

If this picture doesn’t look very much like the glowing portrait Texas boosters like to paint, there’s a reason: the glowing portrait is false.

Still, does Texas job growth point the way to faster job growth in the nation as a whole? No.

What Texas shows is that a state offering cheap labor and, less important, weak regulation can attract jobs from other states. I believe that the appropriate response to this insight is “Well, duh.” The point is that arguing from this experience that depressing wages and dismantling regulation in America as a whole would create more jobs — which is, whatever Mr. Perry may say, what Perrynomics amounts to in practice — involves a fallacy of composition: every state can’t lure jobs away from every other state.

In fact, at a national level lower wages would almost certainly lead to fewer jobs — because they would leave working Americans even less able to cope with the overhang of debt left behind by the housing bubble, an overhang that is at the heart of our economic problem.

So when Mr. Perry presents himself as the candidate who knows how to create jobs, don’t believe him. His prescriptions for job creation would work about as well in practice as his prayer-based attempt to end Texas’s crippling drought.

Thursday, August 4, 2011

Rick Perry's 'Texas Miracle' Includes Crowded Homeless Shelters, Low-Wage Jobs, Worker Deaths



 by Jason Cherkis - 8/4/11 - HuffPo

AUSTIN, Texas -- It was 105 degrees outside late last week when Vanessa Surita, 24, planted herself on the sidewalk and stretched her legs. Her young daughter sat in a stroller within arms length, outside the Austin Resource Center for the Homeless. Her needs were great: housing, a job, a high school diploma. She could mark progress in job applications filled out.

A local pizza chain, a Pizza Hut, a local grocery chain, a Family Dollar -- each the equivalent of a professional lottery ticket.

"I just recently tried to apply at Whataburger," Surita said. "It's been like two weeks ... I've been calling them. They still haven't had a chance to look at my application. There are like 2,000 people that apply every month, so I don't know."

Surita said she and her 21-month-old daughter crash at her sister's place with her two children. "We've been on the waiting list for housing since she was born," she said.

A few days earlier, Kelly Johnson waited patiently in a corner by ARCH's entrance. She sat hugging her backpack. She had lost her job at Subway a month ago. She found temp work sticking price tags on clothes in a warehouse. It was two days a week, and neither day was a sure thing. It did little to prevent her from ending up homeless. Last week was her first without a roof over her head.

"It feels helpless. It feels horrible," Johnson, 31, said. She had a series of jobs she wanted in mind. "I'm looking for customer service, call center, housekeeping like in hotels at the Marriott or "maybe the Omni." One day, she said, she dreams of working in an office, maybe as a paralegal.

Surita and Johnson do not fit in the prevailing narrative about the Lone Star state. According to the Bureau of Labor Statistics, Texas has created more jobs in the last year than any other state. These job openings have become known as the much-hyped, "Texas Miracle." In his February 2011 state-of-the-state address, Governor Rick Perry boasted: "Our economic strength is no accident. It's a testimony to our people, our entrepreneurs, and, yes, to the decisions made in this building. Employers from across the country and around the world understand that the opportunity they crave can be found in Texas, and they're headed our way, with jobs in tow."

Should he ultimately choose to run for the White House, Perry will be spending a lot of his time on the stump repeating those lines. Dig beneath the talking points and you find a more troubling picture: rising unemployment, a glut of low-wage jobs without benefits, overcrowded homeless shelters and public schools facing billions in budget cuts. Surita and Johnson have been airbrushed from the miracle. But they still can be found on the housing waiting lists and shelter entrances.

"If you want a bad job, go to Texas," said Texas Rep. Garnet Coleman (D), who represents a district in Houston, in an interview with The Huffington Post. "If you want to work at Carl's Jr., our doors are open, and if you want to go to a crumbling school in a failing school system, this is the place to come."

The state capital, with its expanded skyline and renovated office parks, will surely be b-roll in any Perry campaign ad. But Austin -- like many across the country -- simply hasn't witnessed across-the-board job stability.

There's a crowd outside the ARCH no matter the heat. The building was designed for 100 dormitory beds, but now sleeps 215 -- including 115 men sleeping on mats on the a second floor dining room and a conference room floor. Even then, Mitchell Gibbs, the director of development and communications, said they are turning away 15 to 50 men a night.

"Austin is supposed to be ground zero of the Texas Miracle," explained Doug Greco, lead organizer with Austin Interfaith, a nonpartisan group of some 30 congregations, schools and unions. "But we have the higher poverty rate and higher child poverty rate--nearly one in three children." He added that the need for shelter, food and clothing has spiked in the city. "It doesn't take much to pierce through the rhetoric," he said.

Texas is struggling right along with every other state. According to the Bureau of Labor and Statistics, Texas had recently bumped up to 8.2 percent unemployment in June which puts it below the national average. Still plenty of states without miracles posted lower unemployment rates; New York, Virginia, Pennsylvania, Minnesota, Louisiana, Arkansas, and Wisconsin, among others are all out performing Texas. Drill down even further into the numbers and there are plenty of residents that haven't felt the miracle.

In May, job growth slowed statewide. According to a recent report in the Houston Chronicle, Houston's not seasonally adjusted unemployment rate jumped to 9 percent. The unemployment rate has hit double digits in the Rio Grande Valley. In Hildago County, it's 12 percent. Quality of life indexes like child poverty rates put Texas further behind. State Sen. Judith Zaffirini (D) told The Huffington Post her state ranks 48th in teen birth rates, 50th in prenatal care and 46th in income disparity -- and 50th in the number of persons who receive a high school diploma by age 25.

With Texas' minimal regulation and low taxes -- and Perry's cheerleading -- a spike in job growth during the past few years became known as the Texas Miracle. The rise in oil and gas prices, as well as a long-time state law protecting homeowners, helped stave off the recession for a while. And as a result, a miracle myth was created, with little exploration as to what impact Perry's policies actually had on the economic picture. The miracle is that anyone would call minimum-wage jobs a miracle. Of the all the jobs in Texas created last year, 37 percent paid at or below minimum wage -- and the state leads the nation in total minimum wage workers, according to a recent New York Times report.

"The important thing to do is not to just count jobs but to look at what kinds of jobs are being created in Texas," explained Dick Lavine, a Senior Fiscal Analyst with the Center for Public Policy Priorities. "Texas is tied for last with Mississippi for the highest percentage of minimum wage jobs and Texas is by far the leader of residents who don't have health insurance. It's low wage jobs without any benefits."

This resonates with Gibbs at the ARCH, which created a 100-bed unit on the third floor for homeless night-shift workers who needed a place to sleep during the day. These workers, Gibbs said, included bakers from downtown hotels who simply couldn't afford Austin rents.

The ARCH may want to think about expanding its homeless worker unit. If there is continued job growth in Texas, the trend continues to point toward the low-skilled, low-wage variety. According to a just-released Georgetown University study, Texas ranks 41 among all 50 states in the percentage of jobs requiring post-secondary education.

When it comes to budget gaps, Texas is just like much of the rest of the country. This year, the state faced a projected budget shortfall totaling as much as $27 billion; the legislature also had to contend with a $4.3 billion deficit in its current budget. The state made massive across-the-board cuts to state agencies -- including $4 billion in public school cuts over two years. Perry and the state legislature also ended up closing out funding for pre-kindergarten programs for roughly 100,000 low-income children. Mass layoffs of public sector workers is expected.

The Texas Miracle may become part of Perry's national pitch, but it's nonsense to state Sen. Zaffrini. "Talking about the so-called 'Texas Miracle," she said in an emailed statement, "is at best disingenuous because it ignores the state's shameful national standing in terms of supporting education and helping the neediest of the needy."

Nor has there been much in the way of adequate job protections. Texas still ranks as the most dangerous state for worker safety. An April study [PDF] produced by the University of Texas and the Workers Defense Project stated that one in five construction workers were injured on the job, while only 45 percent had workers' compensation. The study also noted that a worker dies every 2.5 days and the state sees 16,900 job-related accidents annually.

Emily Timm, a policy analyst with the Workers Defense Project, said that roughly 45 percent of the more than 300 workers surveyed reported being paid wages below the federal poverty line. And one in five workers complained that their employers had paid them less than what they were owed. Being allowed adequate drinking water is even an issue. Nearly a third of the workers surveyed reported that their employers did not provide them with access to drinking water.

Timm said her organization has only seen a further rise in worker problems. "We're seeing more complaints of wage theft than we ever have before," she said. "We're also seeing more and more workers being misclassified as independent contractors." That distinction can be crucial, she said, as it allows the construction companies to not deduct taxes from their paychecks as well as skirt minimum wage and overtime requirements.

In Austin, that lack of income growth has been met with increasing rents and state cuts to safety-net services. This past year, rents have gone up by more than 4 percent. Fred Krebs, a pastor with the Prince of Peace Lutheran Church in central Austin, said he's noticed an increasing number of his congregants are having trouble keeping up. "People's economic level in my congregation has clearly gone down in the last few years," he said. "That's been very clear ... We've had to help our members with meals. Sometimes just $20 to make sure they have milk and eggs and bread ... We just helped a member buy glasses. It was either the glasses or their place to live."

Every Saturday morning, Pastor John Elford serves a free breakfast at University United Methodist Church for Austin's neediest. The number of residents waiting in line, he said, has recently shot up from from 375 to 500.

Elford remembered one family that stuck out. They had left California in the hopes of finding their own piece of the Texas Miracle in Austin. They were in their mid-to-late '30 with two elementary-school aged kids. Things didn't work out so much. "They ran out of money," he said. "They came to us."

Elford's church collected enough money to put the family up in a motel for week. "When I talked with them, they were just worn out from living here and there," he said. At the end of the week, the family moved back to California to live with relatives.

Tuesday, July 19, 2011

The So-Called Texas Miracle: Smoke and Mirrors and Stampedes for Housing

07.18.11
by Abby Zimet

Gov. Rick Perry has stooped to slimy smoke-and-mirror accounting tricks to deal with Texas' biggest budget shortfall in history, but that hasn't stopped him from feeling he's been called by God to run for President, declaring, "This is what America needs." Actually, it seems to need housing and a living wage. Over 5,000 people turned up in Dallas just to get on a two-year wait list for 100 housing vouchers, forming a mile-long line and charging the building when it finally opened. What a sorry sign of the mislaid-priority times.



Monday, June 20, 2011

New Rule: If You Thought the GOP Field for 2012 Could Not Get Any Lamer,...


You Haven't Met Rick Perry!


+++++++++++++++++++++++++++++++++++++++++++++++++++


++++++++++++++++++++++++++++++++++++++++++++++++++


Friday, June 17, 2011

Why Texas is a Complete Basket-Case

 (So Perry and the GOP are proud of the fact that his policies of tax breaks and subsidies for his corporate cronies who fund his campaign in return has eliminated well paying jobs and replaced them with more minimum wage service jobs like fast-food clerks, dishwashers, busboys, and 7-11 clerks? Anyone with a good job who believes in him will be mopping up puddles of puke at an underfunded elementary school within a year. There are not enough jobs in Texas that pay what a person needs for his/her mortgage and to raise a family. The Miracle is a myth--or rather a big pile of lying bullshit. And Perry, the fraud, would be a worse president than GW Bush was. He'll never get elected.--jef)
 +++

Conservatives claim the "Texas Miracle" is a model for the nation, but it's actually a blueprint for winning the race to the bottom.
By Joshua Holland, AlterNet
Posted on June 17, 2011

Conservative mythology now holds up Texas as a shining example of right-wing governance in action. Republicans would have us believe that gutting the state's social safety net, denying workers the right to bargain collectively and relentlessly cutting taxes unleashed a torrent of “job creation” and, ultimately, prosperity.

Under governor Rick “Goodhair” Perry's term in office, Texas has indeed been a model of conservative governance, but the truth is that it has resulted in anything but prosperity for the people of the Lone Star State. In fact, Texas is not only a complete basket-case, it would be faring far worse today without the help of policies enacted by Democrats at the federal level – policies Perry lambasted as “irresponsible spending that threatens our future.”

The kernel of truth on which the tale of the Texas Miracle is built is that the state has in fact added a lot of jobs over the past decade. In a gushing lead editorial, the Wall Street Journal noted that “37% of all net new American jobs since the recovery began were created in Texas.” The Journal then spun that fact like this:
Capital—both human and investment—is highly mobile, and it migrates all the time to the places where the opportunities are larger and the burdens are lower. Texas has no state income tax. Its regulatory conditions are contained and flexible. It is fiscally responsible and government is small. Its right-to-work law doesn't impose unions on businesses or employees. (Yeah, uh, Texas is "will to work" which means a company can fire an employee without giving a reason or warning first.--jef)
In the Journal's hyper-partisan view, the lesson to be learned is that “the core impulse of Obamanomics is to make America less like Texas and more like California, with more government, more unions, more central planning, higher taxes.” That spin was echoed during last week's GOP debate by none other than Newt Gingrich, who asked, “Why [would] you want to be at California's unemployment level when you can be [at] Texas's employment level?”

James Galbraith, an economist at the University of Texas, scoffed at the whole narrative, telling AlterNet, “the notion that our state government is a model is almost enough to beckon the spirit of Molly Ivins back from the shades.” Galbraith said “Texas has been a low-tax, low-service state since the time of the Republic,” and noted that it's “therefore impossible that this fact suddenly accounts for its better job performance over the past few years.”  


“Texas is an energy state benefiting from high oil prices and the incipient boom in natural gas,” explained Galbraith. “That's an accident of nature.” He added that the state “went through the S&L crisis, had major criminal prosecutions and more restrictive housing finance regulations this time around; hence it was not an epicenter of the subprime housing disaster. (Texas may, however, doomed to be the epicenter of the coming commercial real estate crash. Houston and Dallas could be doomed once that market has slowly cratered as hundreds of billions of dollars in bad loans mature.--jef)

That's called a learning experience.” Tighter regulation of the lending industry is also anathema to today's GOP.

Arguably the biggest sleight-of-hand in the Texas Miracle storyline, however, is that many of those jobs were a result of a huge surge in the state's population, much of it fueled by immigration from Latin America (rather than liberal hell-holes like California).

Texas' population grew by 20% over the past decade, and Hispanics accounted for almost two-thirds of that growth. A surge in people created greater demand for goods and services, which leads to more jobs. But the jobs being created in Texas aren't keeping up with the state's expanding workforce – the Wall Street Journal somehow failed to mention that during the exact same period in which it was adding all those new jobs, Texas' unemployment rate actually increased from 7.7 to 8% (it also failed to note that 23 states -- including such deep blue ones as Vermont, New York and Massachusetts -- enjoy lower unemployment rates than Texas).

But perhaps the most laughable claim in this whole narrative is that Texas has been “fiscally responsible.” Perry certainly adhered to the conservative playbook, offering massive tax breaks without the deep cuts in services that might inspire a voter backlash. As a result – an entirely predictable one – the Austin American-Statesman reported that “state lawmakers have spent much of the year grappling with a budget shortfall that left them $27 billion short of the money needed to continue current state services.”

CNN adds that while Perry was railing against the Democratic stimulus package passed over the fierce resistance of conservatives, the state “was facing a $6.6 billion shortfall for its 2010-2011 fiscal years,” and “it plugged nearly all of that deficit with $6.4 billion in Recovery Act money.” The stimulus package created or saved 205,000 jobs in Texas, second only to California. But as James Galbraith told AlterNet, while “the state budget has not yet been cut drastically” due to the stimulus boost, “the key phrase is 'not yet.'” Now that the stimulus has run its course, “if projections for the current budget cycle are correct, things will get much worse in the next year.”

Indeed, those cuts are now on their way. The Texas legislature imposed draconian cuts to Medicaid, cut tuition aid to 43,000 low-income students and is weighing $10 billion in cuts to the state's education system. According to Texas state senator Rodney Ellis, D-Fort Bend, the 2012-2013 budget will underfund “health and human services in Texas by $23 billion, 29.8% below what is needed to maintain current services.”

But Perry's tax breaks are indeed part of the state's jobs picture; as Time magazine's Massimo Calabresi noted, Perry established several massive business tax breaks “designed to lure companies from other states.”
[But] the funds have been controversial. They have channeled millions of dollars to companies whose officers or investors are major Perry campaign donors and Perry has allowed them to keep their subsidies in many cases even when they fail to deliver promised jobs. More important for the purposes of judging Perry’s job-creating record, even those that do produce jobs don’t necessarily create long-lasting ones, or increase the state’s overall prosperity.
In a report written for Perry last spring, Michael Porter of Harvard Business School noted that such tax breaks “ultimately don’t support long-term prosperity,” because companies that can move easily “are looking for the best deal and when the deal runs out they move” again, taking their jobs with them.

He also found that Texas’ per capita income growth was the eighth slowest of any state in the country between 1998 and 2008. That's because, as the American Independent's Patrick Brendel noted, “Texas has by far the largest number of employees working at or below the federal minimum wage,” and the number of crappy jobs has exploded while this supposed Texas Miracle was taking place. “From 2007 to 2010, the number of minimum wage workers in Texas rose from 221,000 to 550,000, an increase of nearly 150 %,” wrote Brendel. As a result, Texas is now “tied with Mississippi for the greatest percentage of minimum wage workers, while California had among the fewest (less than 2 %).”*

At a fundraiser this week, Rick Perry, who despite toying with the idea of secession in the past may now be eying a White House bid, told a group of Republican fat-cats that in his state, “you don't have to use your imagination, saying, 'What'll happen if we apply this or that conservative principle?' You just need to look around, because they've been in play across our state for years, generating real results.”

In this, Perry is absolutely, 100% correct. He slashed taxes to the bone, handing out credits to his political cronies like they were candy. He decried the evils of Big Government while hypocritically using federal stimulus funds to help close Texas' budget gap in the short term, and now he's using the state's longer term fiscal disaster – one of his own creation – as a premise for destroying an already threadbare social safety net serving the neediest Texans. As a result of these policies, plus immigration and other external factors, his state's added a lot of low-paying poverty jobs without decent benefits. He's added very little in the way of “prosperity.”

In the final analysis, Texas is indeed a shining example of conservative governance, as well as an almost perfect model for winning the race to the bottom.

* It should be noted that the cost of living is higher in California than in Texas.