The Cultural Dimensions of Economic Growth
Daniel Henninger has an interesting profile of Rick Perry's Texas (Perry himself is a bit of an afterthought in the piece) in his "Wonderland" column in today's Wall Street Journal. While the whole piece is worth reading for its insights into the Lone Star State's success, it was this passage that jumped out at me:
... The desire of businesses to sample Texas trail dust pre-dates Rick Perry. In 1990, one of the world's biggest companies, Exxon Mobil, left New York City for Dallas. Exxon's former CEO, Lee Raymond, says the move in part was indeed about costs and New York State's notoriously overbearing tax authority. But it was also about working amid a culture of competence. "It's just the attitude in Texas of getting things done and doing them well," he says.
Mr. Raymond remarks that the economic policies that in time trapped the Northeast and Rust Belt in spirals of decline never touched Texas. But this is about something beyond low taxes and no unions: "In Texas the people tend to be farmers or individual businessmen, and they have this attitude: We have to make do with what we have and work together to get things done and survive. It's can-do. That attitude permeates everything there."
I'm not sure this "culture of competence" is quite as distinct from public policy as this passage would have us believe. Rather, I suspect that the government of Texas is economically accommodating because the people of Texas are economically accommodating. But this poses a problem for those of us who live in states with decidedly less enthusiasm for the free market: In this, the greatest era ever for personal mobility, we're at the high-water mark of people voting with their feet (as I noted in an essay a few years ago, California lost more people to Texas and Oklahoma during the three years from 2004 to 2007 than it gained from those states during the Dust Bowl).
Thus, my question for the New Yorkers, Illinoisans and, alas, the Californians among us (as an aside, Richard Epstein is the only person I know insane enough to be all three): how concerned are you that this process is an inevitable death spiral? At a certain point, does the exodus of entrepreneurs become so great that you resign yourself to the inexorable decline of your state? And, to those of you in states that are reaping the benefits of this growing division, do you welcome the newcomers or fear that the resultant growth will eventually lead you to exactly the same cultural and economic bloat that's dogging the states they're fleeing?
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May '10
Re: The Cultural Dimensions of Economic Growth
To some degree, yes. I suspect that it's so far not quite as pronounced in Texas, but it's probably safe to say that the political culture in places such as New Hampshire and Colorado have shifted leftward somewhat as a result of heavy in-migration from people abandoning nearby liberal enclaves.
Apr '11
Re: The Cultural Dimensions of Economic Growth
If these things were irreversible, Texas wouldn't be the poorer but more agile state today. It's incredible how young Texas is in terms of its modern persona. It wasn't until Bush that it got Concealed Carry permits, having been one of the least impressive states in the union on the matter. If California got another Reagan, California could regain a lot of its impetus. Occupy Oakland and their ilk are probably helping.
Mar '11
Re: The Cultural Dimensions of Economic Growth
I'm in Illinois mainly because my parents are here. I moved back because I have lived all over the country (OH, GA, CA, and CT) and I liked it best back here, however, the employment opportunities are limited due to misgovernment.
I don't see Illinois showing any sign of being able to reform. Whenever the subject of spending cuts is raised, it is promptly squelched by the usual threats to essential services (police, fire, et al.) The tax situation is insane -- these clucks are going to keep riding this merry-go-round until they screw themselves into the ground.
Sooner or later, I'll probably end up moving -- down South, in all likelihood. Wherever it is, I'll be looking for a place where people think that the job of government is to defend the coast, deliver the mail, and leave me alone.
Sep '10
Re: The Cultural Dimensions of Economic Growth
"In Texas the people tend to be farmers or individual businessmen, and they have this attitude: We have to make do with what we have and work together to get things done and survive. It's can-do. That attitude permeates everything there."
I've encountered the same attitude and mix in North Dakota. Fascinating observation Troy.
Sep '10
Re: The Cultural Dimensions of Economic Growth
Double post.
Edited on Nov 3, 2011 at 7:47pmDec '10
Re: The Cultural Dimensions of Economic Growth
Washington state is a great study in both situations. The politics of the state is ruled, sadly, by the I-5 corridor, so the business climate really is not very good. It's like watching a bizarre mating ritual how Boeing, Microsoft, etc. and the state government go round and round with each other. However, if you head either east or west of Seattle you are pretty much back in the wild west. I can go into Seattle and see all the Occupy idiots I want, or remain outside of it and see bumper stickers like "Earth First! We'll log the other planets later."
Dec '10
Re: The Cultural Dimensions of Economic Growth
Really great question Troy. This is what the nineth and tenth amendments are for. If part of the country behaves in a suicidal manner (as Greece threatens to do in Europe) then free choice is the self regulating solution. Sooner or later the crazies will pay the price. As far as Texas going crazy because it has too much success, I think we don't need to worry about this. It would take a long time and maybe the object lesson to the crazy states would be enough shock therapy to bring them around.
Dec '10
Re: The Cultural Dimensions of Economic Growth
There’s no hiding the decline. But through how many rings of hell will it pass before hitting bottom? How did Athens become Greece? Rome Italy? The passage of time, the arrival of barbarians, and the conquest of inheritance over work, of entitlement over effort.
Plagues of locusts occur when there are ample harvests to consume. Barnacles attach to what no longer moves. As long as the host reacts, it maintains its habitat, fighting off the insalubrious incrustations from festering and covering it with the filth of an OWS trampground.
What are the forces that have to be opposed? Union and government sponsored community organizing; litigation friendly government regulations; and confiscatory taxation. Texans fight and win against each. Californians lost to them all since their current governor, Jerry Brown, started his first term in Sacramento in 1975.
Guns are a good proxy pointing to the direction in which a state is headed, the size of its inner cities, the distance it still has to go.
Houston absorbed many Katrina refugees. New Orleans has revitalized its core attractions since. It will be instructive to watch Houston grow. An influx of oil production activity will make it and the country more prosperous.
Edited on Nov 3, 2011 at 10:23pmMar '11
Re: The Cultural Dimensions of Economic Growth
I live in Virginia, and the Commonwealth is being overrun by folks from the Northeast and Midwest following jobs. However, they still vote for the policies that ruined the states they've left. Combine the come-here vote with that of the apparatchiks in Northern Virginia, and that's why Virginia is now a "purple" state, when it should be firmly in the "red" category. I wonder how the influx of Californians to Texas will affect Texas politics over the next decade.
Oct '10
Re: The Cultural Dimensions of Economic Growth
I came to Colorado Springs 20 years ago and this was a very conservative area. The influx of coasters has given us a political climate that is the opposite of what I came here for. The liberals crap all over their states and cultures, and then move to another state to clear cut the culture there. I offer one bit of hope. After a 20 year decline, C.S. has just elected an actually conservative mayor and he is doing a little clear cutting of his own. There can be a future.
Oct '10
Re: The Cultural Dimensions of Economic Growth
As I understand it, Texas' legislature only sits once every 2 years, and is limited to a 6 month session. Texas also has a relatively weak governorship. These two added together provide the clue... the spawning of institutional corruption has a brake on it's metastasis.
When you hear that Texan's have voted to go with a year round legislature, it will be over.
Edited on Nov 4, 2011 at 5:42amDec '10
Re: The Cultural Dimensions of Economic Growth
As a current resident of one of the rustiest of the Rust Belt states (Michigan) and a former resident of Florida (born & raised), I can tell you for certain the influx of outstaters has a significant impact. While the blue hairs that descended on the state each winter would bring the inevitable chorus of "back home in Buffalo..." or "I miss the subway!", they didn't vote as residents. That all began to change in the 80's when the orange groves were destroyed by a killer freeze, the growers found it too expensive to replant and sold the vast rolling grove lands for development. Houses sprung up everywhere and the boom was on. 2nd homes initially vs. condos, causing them to seriously consider changing official residence (& vote) immediately swinging the voting calculus to old age issues. Younger immigrants were generally more foreign, especially Puerto Rican and decidedly more liberal. Crime escalated, small towns grew way too fast, public school quality rapidly declined. In general, the state of my youth was finished. The housing crash is pushing some of this back, but I will not live there again. When we, inevitably, move South, we may do the same to TX!
Feb '11
Re: The Cultural Dimensions of Economic Growth
The best representation of the independent Texas spirit can be found in Elmer Kelton's "The Time It Never Rained," in which rancher Charlie Flagg refuses to accept federal drought assistance. That independence goes back to our post-reconstruction state constitution which limits state government authority and lets cities and counties have more authority and autonomy. However, as a native Texan, I have to admit the benefit to my State from government investments in the space program, military facilities, university and medical research, and interstate highways--it was helpful if not causal to our economic success. Our challenge is whether our elected officials will be able to find a way to judiciously and prudently re-build the state's power, water and transportation systems to support our growing population and economic base.
May '10
Re: The Cultural Dimensions of Economic Growth
And I hear from friends in Colorado that the Californians have left their state because of the destructive policies of their former paradise...and brought those economically destructive liberal politics with them.
"As a dog returns to it's vomit..." Viveca Lindfors as Professor Taub in "The Sure Thing"
May '11
Re: The Cultural Dimensions of Economic Growth
Henninger also failed to mention the importance of substantive tort reform, both in 2003, I believe which set limits on non-economic damages, and this year when a modified loser pay system was installed. This will accelerate the move from highly litigious states to Texas and I hope motivate other states to follow Texas' example.
May '10
Re: The Cultural Dimensions of Economic Growth
Well, at least CS still has some conservative influences. Imagine how any conservative living in Boulder the past 30 years must feel right now.
Sep '11
Re: The Cultural Dimensions of Economic Growth
My family moved to Texas when I was ten, from California, to establish a business nearly 30 years ago. We left mild summers and winter with few bugs, storms, weather extremes, lovely soil and numerous other natural benefits. I had never walked through a yard to have grasshoppers rise by the dozens with every step. Much of our time working the land involved picking up rocks. I thought I had entered one of the first rings of hell, especially after a very humid summer without air conditioning.
Texas does not have the same natural beauty or resources (besides oil!) that attracts Californians to Virginia and Colorado. Jobs attract, but maybe those "fer-ners" will be confined to their homes because they can't take the heat, or the storms, or the bugs, or the drought, or the humidity...
Edited on Nov 4, 2011 at 8:17amSep '11
Re: The Cultural Dimensions of Economic Growth
And I don't blame the influx of Californians for Austin's "uniqueness," though they have certainly magnified it. It was always different, mainly because of the hippies and the university.
Sep '10
Re: The Cultural Dimensions of Economic Growth
Didn't Thomas Sowell mention in one of his UK interviews with Peter a city in Texas with no zoning laws whatsoever?
Sep '11
Re: The Cultural Dimensions of Economic Growth
It's true. Houston has no zoning laws.