When the dramatic drop in oil prices occurred starting in mid 2014, liberals were conflicted. They hated the fact that low oil and gas prices increased the attractiveness and use of fossil fuels. But they took solace in the fact that at least the irritating Texas economic boom was finally reversed — that a hick state’s economy built on their lucky abundance of natural resources would now be the Lone Star State’s undoing. The progressives were actually gloating about the resulting economic bust the hated Texans would experience.
Only one problem for liberals. It didn’t happen. Texas is still chugging along, with hardly a hiccup from the plunge in petroleum prices.
This ain’t our grandparents’ Texas. No-sir-re-bob!
Today’s Texas is a highly diversified economy. Yes, the oil industry is certainly important — but it’s only one component of the state’s economy — and a shrinking one at that.
Consider this recent history of the Texas unemployment rate — remembering the precipitous decline in petroleum prices starting in mid-2014:
Mar 31, 2015 4.20%
Feb. 28, 2015 4.30%
Jan. 31, 2015 4.40%
Dec. 31, 2014 4.60%
Nov. 30, 2014 4.60%
Oct. 31, 2014 4.70%
Sept. 30, 2014 4.80%
Aug. 31, 2014 4.90%
July 31, 2014 5.00%
June 30, 2014 5.00%
May 31, 2014 5.10%
April 30, 2014 5.20%
Mar 31, 2014 5.30%
Feb. 28, 2014 5.40%
Jan. 31, 2014 5.50%
https://ycharts.com/indicators/texas_unemployment_rate
After all, NONE of the companies that left California for the Lone Star State in the last few years went there because of the oil business. Texas simply offers a superior economic climate. And keep in mind that the low Texas unemployment rate is IN SPITE OF the fact that each year a great influx of economic refugees from around the nation relocate there.
BTW, the March CA unemployment rate? 6.5% — a full 55% higher than the March Texas rate of 4.2%. And that in spite of the fact that California annually LOSES more people to other states than come here from such states.