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Jared Bernstein

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Texas and the Government: Better Friends Than You'd Think

Posted: 08/17/11 10:00 AM ET

At least better than you'd think listening to Gov Perry's anti-government rhetoric. When he announced his candidacy for president the other day, he growled that his goal as president would be to make Washington "as inconsequential in your lives as I can."

Except when it comes to job creation. Over the last few years, government jobs have been awfully consequential in Texas: 47% of all government jobs added in the US between 2007 and 2010 were added in Texas.

The chart shows that Texas employment wasn't down much at all in these years, as the state lost only 53,000 jobs. But looming behind that number are large losses in the private sector (down 178,000) and large gains (up 125,000) in government jobs.

2011-08-17-tx_Kyns.png
Source: BLS


Now, this was a period when the nation lost close to eight million jobs, so this churning in Texas is a very small drop in that bucket. But it sure doesn't match the Governor's anti-government rhetoric.

In fact, as the table below shows, the nation as a whole added 264,000 government jobs, 2007-10, meaning public-sector jobs added in Texas account for almost half of the nation's public-sector jobs over these years.

2011-08-17-tx_Kynstbl.png


How did that happen? Well, Gov Perry has a funny way of going about that "inconsequential" thing. According to many news accounts from back in the Recovery Act days:

Turns out Texas was the state that depended the most on those very stimulus funds to plug nearly 97% of its shortfall for fiscal 2010, according to the National Conference of State Legislatures.

Now, I've got no problem with a state government using Recovery Act funds to retain or create jobs. In fact, the figure and quote above shows Texas to be following a traditional Keynesian game plan: as the private sector contracts, turn to the public sector to temporarily make up part of the difference.

So, no disrespect Governor, but when you're getting your Keynes on like that, no need to hide it behind all that anti-government rhetoric.

This post originally appeared at Jared Bernstein's On The Economy blog.

 
 
 
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CSDofNM
I speak lolcat
01:56 AM on 08/18/2011
Simpler version:

Half of all federal jobs went to Texas in 2007-2010.

Perry and Private industry lost more jobs than the federal government added.

Perry needs to come clean about where the jobs came from, and where they went to, right now.
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IsotelusMaximus
Resist we much.
11:24 PM on 08/17/2011
Are any of these jobs Border Security? You need to categorize the jobs, Mr. Bernstein.
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HUFFPOST SUPER USER
Russell Masingale
weary I am of the Astroturf.
03:00 AM on 08/18/2011
nope. a gov job is a gov job is a gov job. either live in the real world or live in rickers fantasy world, where you can yell about washington overspending but be out to suck up as much of that federal money as possible and not be just another overheated tea-bag.
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IsotelusMaximus
Resist we much.
12:55 PM on 08/18/2011
Huh? A government job is a government job? Ok, that's great. However, I was thinking that since Texas is a very large border state, that maybe some of the new government jobs could be border security? Every conservative that I know would have no problem hiring more border agents. Do you now understand why the author should have categorized the jobs?
Viper
Former repub, still repenting
09:29 PM on 08/17/2011
Repugs complain about the stimulus money. They say that Tax cuts are not an expense, but 40% of the stimulus was tax cuts.. that they NOW suddenly consider an expense, because it was not a repug Tax cut! LOL

They also now that Obama extended the bush tax cuts which are half of our debt going forwards, complain about the deficits under Obama(down from the over ten trillion Bush handed him after Bush was handed 5 trillion in surpluses and turned that into 6 trillion in additional debt, an 11 trillion swing...

Now I have no problem with Perry and other repugs taking the stimulus. I have a problem when they say it didnt help and didnt create jobs, which is however completely against all the facts, while they asked for more.

They say that government does not create jobs.. and then the facts they tout about job creation show that the jobs they created were mostly government jobs.

Voters s/b angered about such lying that makes them look like fools. They s/b insulted to the point politicians would not dare do so.

Regards
Viper
Former repub, still repenting
09:21 PM on 08/17/2011
When Reagan cut taxes and trippled our debt and doubled the size of Government, that was Keynsian economics... Bush did the same! Of course Kensyian economics and deregulation and misdirected funds equals bubbles and crashes which both occured under Reagan and Bush

Now what he spent money on was a phoney Defense build up(low Multiplier, no capital assets created that become self funding like inrastructure or a factory that exports) and no go weapon system as I was in the defense industry and it was joke.. instead of infrastructure and MFG.. which he began the outsourcing of, leaving us naked in a global economy and with ever grwoing trade deficits.

Regards
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HUFFPOST SUPER USER
asdusty
Free Bradley Manning!
10:00 PM on 08/17/2011
No, it wasnt Keynesian economics. Read Keynes, then comment.
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HUFFPOST SUPER USER
sloyd
Return to original Republicanism to save America
08:30 PM on 08/17/2011
For anyone who cares to see where the Stimulus money went in Texas here it is.
"Texas Legislature appropriated $14.4 billion of the stimulus money for fiscal 2009, 2010 and 2011. Five state agencies account for 93% of those appropriations: Texas Education Agency, Health and Human Services Commission, Texas Department of Transportation, Texas Department of Housing and Community Affairs, and the Texas Workforce Commission.

The federal government is also sending money directly to local governments and other institutions, such a military bases, in Texas."

And here is the breakdown of appropriations.
http://www.window.state.tx.us/recovery/transparency/appropriated.php
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HUFFPOST SUPER USER
bg66astoria
Research Helps
05:50 PM on 08/17/2011
How about all that DOD red state welfare in Texas???
Viper
Former repub, still repenting
09:31 PM on 08/17/2011
We ,like much of the south have bases the size of small governments. Maintenance on these bases used to be done by the troops(who gained job skills) at a fraction of the cost, but now its been privtized under Bush to repug crony companies at more than double the cost and soldiers nolonger learn skills that will help them in the private sector as use to be the case.

Regards
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HUFFPOST SUPER USER
conal6
WINTER IS COMING
05:32 PM on 08/17/2011
Lets not forget the HUGE NIS compound in San Antonio so large it has its own Zip Code . Fort Hood I want to hear Perry talk about Secession around the country What huge disrespect to Veterans yes Civil war dead on both sides. This guy is goof ball I hope the rest of the nation is not stupid enough to fall for his crap.
05:08 PM on 08/17/2011
But how does military spending and spending on contractors fit in to this picture?
Viper
Former repub, still repenting
09:38 PM on 08/17/2011
Well military spending is a stimulus , but its a very low job MFG and its a high cost/low return expense

For example many of the public works projects under FDR to create jobs are still here from roads, parks, Dams, colleges, The orange Bowl, and government buildings, but little of the WW2 weapons are still in use.

Military spending is an insurance policy, produces no capitals assets that generate a profit and have a payback... Cut the funding of the military or a defense contractor at its OVER, instantly.

And lot of our military spending flows out of the country to 900 foreign bases... which is a loss out of our wealth buckets, just like trade deficits.. and the major cause of our problem is thus trade deficits and defense spending, while spending 1/3 as much on infrastructure as other countries but 20 times more on military.

Regards
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Moose Luck 99
Rand Paul is a LIAR!
05:02 PM on 08/17/2011
CHINA LOVES RICK PERRY :)

http://www.youtube.com/watch?v=7LFRDvkNz0U&feature=youtu.be
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ChiBloger
And the truth shall set us ALL free
04:44 PM on 08/17/2011
I hear the Texas Gov has a rainy day fund worth 80 Billion. But he cut spending to schools 10 mil and cut other services. And he took Obama's Money while spitting in his face. Also complained about Obama not coming to his fiery rescue in his global warming induced 100 day heat wave.
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HUFFPOST SUPER USER
conal6
WINTER IS COMING
05:34 PM on 08/17/2011
Yes that is true not one home burned down just acres of nothingness. No one died.
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ChiBloger
And the truth shall set us ALL free
06:16 PM on 08/17/2011
Unfortunately Perry is a great example of what Republican politics has become. He himself is great at politics (short term personal gain) but extremely poor in governing. Where governing evolves solving problems and making life for people better well into the future.
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BillZBubb
It's hot in here: I need more fans!
05:56 PM on 08/17/2011
Actually, the rainy day fund was more like 8 billion. Even so, perry fought tooth and nail to cut education and not touch the fund. Even the ultra right wing republican legislature wouldn't go that far and they dipped into the fund for about 3 billion.

Hopefully the country will learn a lot more about perry's record before he gets the r nomination. If they do, he'll scurry back to Texas.
08:29 PM on 08/17/2011
For the 2012 budget, Texas will be cutting spending 8.5% - this is after a 15% increase in the 2011 budget. So here come the layoffs mainly in health care and education (of course). it's very possible that Texas's unemployment rate could be higher than the national rate a year from now.
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HUFFPOST SUPER USER
Paros
02:56 PM on 08/17/2011
Perry who received a D in economics calls Bernacke a traitor if he prints money....
Perry - the scariest politician to run for the highest office.

I awoke from a nightmare this morning wondering why the low-income right wing continue to vote against their own interests to the nations detriment. The educational system in Texas appears to be very, very lacking.
01:24 PM on 08/17/2011
Time and again we've heard these anti-Washington politicians. Perry is a particularly unimpressive specimen. Not only would he be a bad fit for the White House (which, I hope, he does not plan to move to Texas), he seems to be advocating isolationism in a time when we no longer live in a rapidly-growing, wild-west, resource-rich country removed economically from the rest of the world.
08:35 PM on 08/17/2011
He won't move the WH to Texas - he'll just turn it into an evangecal church. His mentality is so limited, he'll want to do a lot of praying to try to make up for it.
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01:16 PM on 08/17/2011
"No disrespect Governor Perry, but...."

Why not?
01:06 PM on 08/17/2011
The stimulus helped Texas quite a bit. I hope the people of Texas are appreciate of it.
02:16 PM on 08/17/2011
Don't hold your breath. The whole Tea Party has been at the banquet and doesn't even realize it.
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American 69
01:01 PM on 08/17/2011
If we can believe Mr. Perry, his goal is to balkanize America and make it into 50 separate little states that have little or no relationship or loyalty to any central government. This was tried in Eastern Europe and the result was wars, poverty, ignorance, and tyranny. Perry is a contradiction. He seems to be able to "talk the talk" but doesn't "walk the walk". This guy looks to me like a Bush clone but, not as smart..... Should be good for a few laughs....
02:45 PM on 08/17/2011
It was tried tried here too, which is why were are not currently living under the Articles of Confederation...which is where I fear the Tea Party wants to take us back to.
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katmeyster
Proud practical progressive atheist
03:13 PM on 08/17/2011
We won't be laughing if he becomes President.
08:39 PM on 08/17/2011
Everyone enjoys watching a train wreck - which is what we'd get from him in the WH.