New York & Texas - Policies & Results

Although the policies of the Obama Administration have served to hinder the growth and to minimize the efficiency of each of the fifty states, America’s government, at least in theory, remains a constitutional republic. As such, the government policies of each of the several states, and their respective impact on the citizenry, offers Americans an invaluable lesson on how to proceed in the future. No two states may better highlight the opposing views of government in America than those of New York and Texas. New York, a firmly regulated and highly taxed northeastern union stronghold, represents the epitome of modern liberalism. Texas, with a culture rooted in individual drive and a penchant for limited government, is a model of contemporary conservatism. It is not surprising that the opposing policies of New York and Texas, and their diverging views of government, have likewise produced entirely dissimilar results.

Taxes - New York claims the mantle of having the highest top marginal individual and corporate tax rates in the nation. Texas, in contrast, levies no state income tax at all. The population of Texas has increased exponentially over the course of the past decade, while New York has lost 1.75 million people to emigration. Due to the nature of its “defined-benefit” pension system and its unhealthy reliance on federal government “matching funds”, New York’s unfunded liabilities have continually increased, even as its population has diminished. This has led to a vicious cycle of repeated tax increases on an exceedingly narrow tax-base. Since 2009, Texas has added 265,300 new, net jobs to its workforce - New York, 98,200, a remarkable and illuminating comparison.

Healthcare - Texas Governor Rick Perry has been most successful in initiating tort-reform in his state, minimizing frivolous lawsuits and excessive settlement demands, thus providing cheaper services and more accessible healthcare for Texans. In contrast, New York, notorious for a legal system that fosters gratuitous settlements, claims a healthcare system that is among the highest priced and least accessible in the nation.

Energy - Texas is leading the shale oil boom that presently grips our nation. Governor Perry’s efforts to promote energy independence for Texans, via hydraulic fracturing, has led to strong economic growth and reduced energy prices in his state, as well as an increased capacity for American commodity production, e.g. steel and petrochemicals. In New York, on June 6th, the assembly passed a bill that bans all forms of hydraulic fracturing through mid-2012. The legislature cites environmental concerns as the impetus of its moratorium, notwithstanding evidence to the contrary, and with little regard for the millions of dollars and thousands of jobs the industry would bring to the state.

The stark contrast between the respective governments of New York and Texas is indicative of a broader conflict that presently pervades America. Through low taxes, minimal regulations and free trade initiatives, Texas has categorically rejected the economic model of government that currently prevails in Washington. Conversely, New York has warmly embraced the big-government, loose spending policies of the Obama Administration. Through an honest assessment of the pros and cons of New York and Texas policies, fair-minded Americans may clearly discern which role of government, liberal or conservative, will best promote their interests. Herein lays the veritable genius of America’s form of government.

Jeremy Pitcoff