Monday, August 22, 2011

http://krugman.blogs.nytimes.com/2011/08/22/low-wages-in-texas/

I guess Ross Douthat’s column requires some sort of reply. So let me address three issues.

All the critics need to show is that Texas is not in fact the miracle Perry claims. And it isn’t.

Since there’s a long-term shift of population and jobs to Texas, you’d expect job growth in Texas to be higher than in the rest of the country even in a recession, and the key question is whether that growth has been sufficiently high to keep up with population — and it hasn’t.


Bureau of Labor Statistics
Source.
So if your picture is of employers shifting from the Northeast to Texas, drawn by low labor costs, that picture is correct.



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