I try (often unsuccessfully) to avoid politics whenever possible, but it has a tendency to frequently collide with economics. This past week, I was in all parts of Texas interacting with thousands of people. I heard some proclaiming the end of the “Texas Miracle,” while others heralded the dawn of a new era. I will offer a few thoughts.
First, Texas will certainly not lose its status as a highly competitive area able to achieve ongoing growth. Much of our advantage is unrelated to policy (demographics, location, natural resources, etc.). Other aspects are bipartisan and harken back to Democrats and Republicans decades ago.
I have been doing analysis underlying much of Texas development policy for over 40 years. I was in the room when (Democratic) Governor Mark White laid the foundations for the tech explosion in Texas that continues to this day and when (Republican) Governor Rick Perry spearheaded comprehensive development legislation years later. I was there when Democrats enacted the economic development sales tax in 1989 and when Republicans passed game-changing measures in 2003 (with majority support from both parties). Prosperity is not political, and neither party wants to preside over the demise of Texas as a place of opportunity and progress.
Texas growth has slowed in the past two years, largely due to disproportionate impacts of tariffs and immigration actions on the state. To the extent those policies are moderated in Washington, we will benefit.
Moreover, the election did not hinge on traditional development policies. I would expect a greater tendency for (hopefully) sensible guardrails in some areas, but not to an extent to stifle economic advancement. Conversely, the areas that were front and center, such as enhanced emphasis on public education and healthcare access and removing the focus on culture wars (which have caused Texas to be near the bottom in quality-of-life rankings), will only enhance the business climate. There is no more important catalyst for sustainable growth than investment in world-class educational opportunities. Texas has long depended on domestic migration to partially support its expansion, and the pace has slowed significantly of late. These policy directions could reverse that trend. Things that make the lives of individual Texans (and prospective Texans) better are unequivocally in our economic interest.
The fact that majorities will be divided between the Texas House and Senate may limit change, but Texans are clearly demanding a different approach. The parties have varying priorities, and emphasis will shift in certain areas. Neither party, however, would benefit from dismantling the core of our success. This election reflected the desire for leaders to focus on solving problems and improving lives, which should incentivize both parties. Much can be gained in the sensible middle. Stay safe!
Editor’s Note: The above guest column was penned by Dr. M. Ray Perryman, president and chief executive officer of The Perryman Group (www.perrymangroup.com). The Perryman Group has served the needs of over 3,000 clients over the past four decades. The above column appears in The Rio Grande Guardian International News Service with the permission of the author. Perryman can be reached by email via: shelia@perrymangroup.com.
