Krugman: Texas 'Miracle' a Myth

Texas Gov. Rick Perry often touts his state’s economic performance during the Great Recession, but New York Times columnist Paul Krugman is having none of it. “[T]he Texas miracle is a myth,” Krugman writes, noting that the state’s 8.2 percent unemployment rate is higher than states like New York and Massachusetts. One in four Texans also lacks health insurance—the highest uninsured rate in the nation. Texas’ job growth is largely the result of population growth, Krugman argues. “[I]t needs lots of new jobs just to keep up with its rising population—and as those unemployment comparisons show, recent employment growth has fallen well short of what’s needed,” he writes. “What Texas shows is that a state offering cheap labor and, less important, weak regulation can attract jobs from other states.”