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Red Dawn in Texas
Texas Leads Job Growth at All Income Levels

We all know that Texas is selfishly stealing jobs from blue states with its unjustly low taxes and friendly business climate, but did you know it’s also winning the fairness game? A new report shows that the Lone Star state didn’t just lead the U.S. in job growth from 2000 to 2013; it did so across all pay levels. The WaPo’s GovBeat reports:

“Texas has also created more ‘good’ than ‘bad’ jobs,” [researchers Melissa LoPalo and Pia M. Orrenius] write. “Jobs in the top half of the wage distribution experienced disproportionate growth. The two upper wage quartiles were responsible for 55 percent of net new jobs. A similar pie chart cannot be made for the rest of the U.S., which lost jobs in the lower-middle quartile over the period.” […]

We’ve written plenty about how the income gap has continued to grow in recent years and decades, and the same is true with jobs. Nationally, all the jobs created since 2000 were concentrated at the highest- or lowest-paying quartiles. In Texas, however, job creation was more broad-based. […]

Most sectors in the state contributed to the growth of so-called “good jobs,” they found, though education and health services were the runaway leaders for high-wage job creation.

As the report notes, Texas does have the second highest share of its population earning the federal minimum wage, but the low cost of living reduces the impact of this fact relative to other states. Here Texas bests the competition again: it never really occurs to blue states to aim policy at making the cost of living compatible with the existing minimum wage, only to periodically raise the minimum wage to chase the rising cost of living. Low property taxes and the absence of a state income tax helps people making $7.25 an hour—often even more than raising the wage to $9.00 and taxing everything in sight. Put simply, minimum wage workers in Texas have far more purchasing power than higher wage workers in, say, California.

Add to that the growth of “good jobs” across all sectors and pay levels in the state, and Texas is making chumps of its blue competitors. Governor Oops is laughing all the way to the bank again.

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  • Jim__L

    And this guy isn’t our president right now because?…

  • Boritz

    “Texas does have the second highest share of its population earning the federal minimum wage.”

    Hmmmm. Sounds bad. Why does Massachusetts not have a statistic like this? Oh yeah. Much of this strata doesn’t earn anything in a place like that and couldn’t afford the cost of living if they tried and already voted with their feet which includes never going there in the first place.

  • crocodilechuck

    Complete bullshit. Or should I state, another superficial puff piece recycling the tired tropes of Mead’s ‘Yankee Doodle Dandy’ punditry: ‘Red vs Blue’

    “But Texas has sales and property taxes that make its overall burden of taxation on low-wage families much heavier than the national average, while the state also taxes the middle class at rates as high or higher than in California. For instance, non-elderly Californians with family income in the middle 20 percent of the income distribution pay combined state and local taxes amounting to 8.2 percent of their income, according to the Institute on Taxation and Economic Policy; by contrast, their counterparts in Texas pay 8.6 percent.” (snip)


    • stevewfromford

      Crocchuck, If you bothered to actually read the article you linked and, particularly, the comments you would see that a very knowledgeable commenter absolutely DESTROYED the entire premise of the article, which was that Texas just wasn’t that great, by citing fact after fact to refute innuendo after innuendo!
      Your comment is actually the only thing that is “complete BS”

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