I’ve written numerous times on this blog about the “Texas Economic Miracle” and what it means for New Mexico. With Rick Perry’s entrance into the presidential race, the national spotlight is now being shined on the Texas economy in a big way. Liberals like Paul Krugman want nothing more than to cast doubt on the low taxes and limited regulations in Texas and their role in spurring the Texas economy.
As Shikha Dalmia of Reason writes, Texas has indeed done a lot right and there are good reasons for people to flock there. In summary writes Dalmia, “Texas offers proof that people prefer jobs, even low-paying ones, to lavish social benefits — repudiating the liberal tax-and-spend economic model.” After all, unskilled Mexicans who choose to live in Texas (and make up a great deal of the state’s population growth) are not likely to be paid more than minimum wage, but they still prefer Texas to high-tax welfare states like California.
Of course, as Dalmia points out and conservative columnist Tim Carney expands upon, just because Texas is a business friendly place, that doesn’t mean that Rick Perry is hitting all the right notes in terms of economic policies.
So, New Mexico should follow Texas by eliminating its income tax and adopting Right to Work legislation, but that doesn’t mean Gov. Martinez should follow everything that Rick Perry has done in Texas.