A Texas Not-So-Much-Miracle Update


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.

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3 comments

  1. Pingback: Lastest Unemployment Benefits Texas News | Unemployment Claim
  2. Matt

    Texas’s population is growing faster than NY or MA. So, Texas getting back to 100 before NY or MA does not necessarily mean they are recovering faster. It is a result of the backgroud trend.

    • D. Boucher

      Agreed about population growth, but the fact that Texas has had the capacity to shed less jobs during the downturn and create more jobs than both NY and MA since the trough means that the economy was a but more resilient, hence the slight advantage.

      That being said, the superior growth in population or active population has an effect on unemployment rate, not necessarily on employment.

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