Paul Krugman: Don't Believe The Texas Economic 'Miracle'

Paul Krugman: Don't Believe Texas' Economic 'Miracle'

These are tough times for state governments. Huge deficits loom almost everywhere, from California to New York, from New Jersey to Texas.

Wait -- Texas? Wasn't Texas supposed to be thriving even as the rest of America suffered? Didn't its governor declare, during his re-election campaign, that "we have billions in surplus"? Yes, it was, and yes, he did. But reality has now intruded, in the form of a deficit expected to run as high as $25 billion over the next two years.

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