6 thoughts on “Economic Recovery

  1. To be frank, the released economic reports on unemployment and housing data were not really convincing. Not sure whether it’s the work of certain quarters who purposely did it to spread the news around and lead you to believe that things are finally turning. While there’s nothing wrong to be optimistic, I also want to see real hard facts and data because accepting that it’s finally over.

  2. sockyee is correct. Those numbers are tweaked and inflated to reflect “recovery.” “Desperate times …”

  3. Dave…does this kind of data ever affect your thinking? Why did TX create more jobs in 2008 than the other 49 states combined?…:
    California needs a strong leader, says Texas governor Rick Perry. That strong leader, Mr. Perry thinks, needs to go to Sacramento and “take special interests out” of government. He needs to “make massive cuts” in spending and taxes. And he needs “to make major changes in the constitution,” including tort reform.
    What about Arnold Schwarzenegger? “Arnold—I think Arnold squandered that chance.”
    Six years ago, Mr. Perry’s state underwent a critical tort reform that was codified in the state constitution. The payoff is that Texas is now outpacing California economically. According to the Texas Public Policy Foundation, between 1997 and 2006 Texas’ economy grew an average of 4.3% while California’s grew at a rate of 3.7%. But as of 2002 (to 2007), with tort reform in place, Texas’ annual economic growth jumped to 5%, while California’s remained essentially the same at 3.6%.
    With a tan baseball cap hanging off one knee, Mr. Perry is proud to report that “Texas created more jobs in 2008 than the rest of the states—combined.” As of July, the state, which taxes neither capital gains nor income, had an unemployment rate of 7.5%, two points below the national average, while California’s hovered at 11.5%, two points above.
    No wonder over half a million people flooded into Texas between 2000 and 2007. Meanwhile, 1.2 million residents left California in the same seven-year period.

  4. Unfortunately this is currently what we are seeing at the moment. I just hope that the jump in stock indexes for the past few days will not fizzle out just like that and will continue to climb. It has to recover or I dare not imagine what is going to happen next.

  5. Let me see if I have this right – Texas has economic growth because they don’t let people sue big corporations who do harm – known as tort reform.
    But isn’t the libertarian idea that we shouldn’t regulate big corporations, but they won’t do harm because if they people will sue them?
    Or are you saying that Texas has economic growth because big corporations are allowed to do anything they want to anyone?
    By the way Texas taxes oil companies a lot, and California doesn’t tax them at all. So are you saying that Texas has economic growth because they tax oil companies?

  6. That is odd that California does not tax the oil companies. I am an ardent low taxer but I understand some basic level of taxation is required to sustain essential services. As a natural resource, the state can lay some claim to them without being greedy. TX and AK have struck a balance. AK recently tightened up on the oil companies sweetheart deals. The EOGs and XTOs of the world will save our bacon as we switch to natural gas. Still, hold them to good clean up and disclosure standards.
    And TX did tort reform, not tort obliteration. Principled government can seek to strike a balance.

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