Paul Krugman reiterates that he thinks that the Texas miracle is Republican mumbo jumbo. However, I’ll reiterate that Texas might still have a slight edge over New York and Massachusetts. I highly doubt that the result is budget related, but I simply think that unemployment rate (depicted in Krugman’s graph) does not tell the whole story.
When looking at employment since peak rather than unemployment rate over time, Texas remains above (relatively speaking) New York and Massachusetts. Again, absolutely not a miracle, but Texas is, according to those numbers, doing a bit better.
Update: Free Exchange at The Economist Online has a post on the issue.