Over at Breitbart, Chuck DeVore -- the Vice President of Policy at the Texas Public Policy Foundation -- has an excellent article smacking down the critics of Texas. Mr. DeVore undertakes a point-by-point dismantling of a nonsensical attack on Texas by "an 'expert' in urban planning and transportation matters" from North Carolina. DeVore's piece is well worth the read, and I'll add some data to further buttress the economic defence of Texas over states like California.
According to the Department of Commerce's Bureau of Economic Analysis, California's real per capita GDP (constant 2009 chained dollars) has declined by 2.7 percent since 2007. Yes, you read that correctly. California's real per capita GDP peaked in 2007 at $54,990 and is still below this level, reaching only $53,500 in 2013. The national real per capita GDP only dropped 0.2 percent since 2007, so California has under-performed the nation with respect to economic growth by a long shot over the past six years. Indeed, California's economic performance since 2007 is tenth worst among all the states.
What's going on in Texas? Since 2007, the Lone Star State's real per capita GDP has increased 7.3 percent, the sixth best performance in the nation. Texas' per capita GDP ($52,465) in chained 2009 dollars currently stands just $1,032 behind the Golden State, and the gap is closing fast. Last year, real per capita GDP in Texas grew by 2.1 percent -- the tenth highest growth rate in the United States (well above the national average of 1.1 percent) and 62 percent faster than in California, which only barely beat the national average with a growth rate of 1.3 percent, ranking it 27th among the states.
As DeVore notes, "Texas' real [per capita] personal income (in 2008 dollars) was $41,733 in 2012, according to the U.S. Bureau of Economic Analysis. This compares to $38,888 in California and $39,103 in North Carolina." One can also add that since 2008, California's real per capita personal income has declined by 1.5 percent, whereas that of Texas increased by 2.1 percent.
Since 2007, Texas' per capita disposable personal income has increased by more than 18 percent in nominal terms. California? Only 10 percent. Per capita disposable personal income grew 80 percent faster in Texas than in California over the past six years. Last year, California's per capita disposable personal income grew only 0.8 percent, slightly less than the national average, and much lower than in Texas -- which grew at 1.2 percent.
North Carolina's performance is even worse. Last year, its per capita disposable personal income only increased by 0.5 percent (i.e., worse than California), and Texas has a per capita disposable personal income more than 14 percent higher than the Tar Heel State.
How can we forget the unemployment rates? Texas currently has an unemployment rate of just 5.1 percent, one of the lowest in the country. California would be up at 7.6 percent, the fifth highest in the nation.
Your money also goes further in Texas. The state had 12th lowest cost of living in the United States for the first quarter of 2014. California had the fifth highest among the states. Each and every cost of living sub-component (e.g., grocery, housing, utilities, transportation, health, and miscellaneous) is much higher in California. The big ticket item of housing isn't even in the same ballpark. Texas has a housing cost index less than half that of California.
An economic comparison of Texas versus California in recent years is no contest. Texas wins easily.
Sierra Rayne holds a Ph.D. in Chemistry and writes regularly on environment, energy, and national security topics. He can be found on Twitter at @srayne_ca
