Tipping Our Hats to the Ten-Gallon Economy

Abstract

Texas has grown twice as fast as the nation for over 25 years. This fantastic growth has lifted many boats. Living standards have increased along with employment opportunities, attracting record migration to the state. Per capita income was just a percentage point shy of the nation’s in 2014, a level previously achieved only at the height of the 1980s oil boom. Meanwhile, Texas’ unemployment rate has fallen below the nation’s and remained there for over a decade. Home affordability has remained high—the American dream come true for many. There are several reasons for this superior growth record, including low taxes, a business-friendly climate, and booming energy sector. This chapter introduces the articles in this volume, which applaud these accomplishments and explore their root causes, all the while raising concerns about the tradeoffs inherent in the Texas model and their implications for the state’s future.