Name: Nguyen, Lan Phuong Economics 101 02/10/2011

Texas Jobs Boom Miracle

The blog entry: What is the matter with Texas? and the article The Texas Unmiracle, written by Paul Krugman gives me a deeper view of how ugly the Texas jobs boom miracle is. The blog entry is published in 25th, September 2011 on Krugmans blog and the article is published in 14th, August 2011 on the New York Times.com both criticize Perrys Job generating power. The article and the blog entry help me understand the law of demand and supply and the truth about an ugly miracle that hurts so many poor people but brings many advantages for the governor who is running for his presidency. Krugman does not write much in his blog entry but he writes what the readers should know in his article published on the New York Times.com. He questions all the readers and all people watching Perrys performance in his presidential race about how he could become a political legend and unstoppable force. His wife answers that question for him: Texas is feudal. Meaning that Perry was the candidate of the bidness community, and in Texas, what bidness wants, bidness gets. And that is the truth. If Perry wants his state to have lower unemployment rate than other states, he definitely gets it. According to the Bureau of Labor Statistic, Texas has been adding jobs at a rapid clip since the recession's end in 2009. The state has created nearly 297,000 net new positions since June of that year, representing a major chunk of the nation's 715,000 gain. Terry Clower, who directs the Center for Economic Development and Research at the University of North Texas, said: "Private sector job creation has been pretty strong

compared to most other states. Texas has fared better than most of the nation,"(money.cnn.com). Texas s jobs is up 0.7 percent since the beginning of 2008; Texass federal government jobs is up 7 percent while USA s federal government jobs is only up to 4.3%; Texas s state government jobs is up 8.4 percent while U.S s state government job is down 0.1 percent( usnews.com). All of this numbers are the most pervasive evidence for a brighter job picture in Texas than anywhere else in USA. Paul Krugman has revealed all the truths behind that miracle. The miracle, according to Perry, is low taxes, predictable regulation, a fair legal system, and a skilled workforce. And he's been sharing it with companies around the country, hoping to lure them to the state (money.cnn.com). The truth, there are no such things called as: predictable regulation, a fair legal system and a skilled workforce under Perrys government. The secret to Texass job miracle are: weak regulation, booming immigrants population and unskilled workforce. Perry should be thankful for all the immigrantsMexicans moving to Texas in searching for a safer life and the flow of people moving to Texas. They are unskilled people and un-documentary workers who are willing to work under any circumstances, do whatever they can to earn little money and accept low cost of living. They attract all the corporations to come to the Lone Star State. They are surplus of labor and greater local employment so they do not have choice about their wages and their jobs. The equilibrium of demand and supply proves that fact. When the supply of labor is increasing, the curve will shift to the right. The demand of job is not changed yet that creates the equilibrium price between job demanded and supply labor goes down. It means that the peoples wages down. They represent the inequality in income in America. They are the people who work too much and never have enough money to survive while the top

0.1% population is making more money than the rest of America. Timothy Smeeding, a University of Wisconsin-Madison professor who specializes in poverty said. More than other countries, we have a very unequal income distribution where compensation goes to the top in a winner-takes-all economy." (huffingtonposts.com).The weak regulation creates jobs for people but crosses the line principal immorality. Some 550,000 workers last year were paid at or below the federal minimum wage of $7.25, more than double the number making those wages in 2008. Thats 9.5% of Texas' hourly workforce, which gives it the highest percentage of minimum-wage hourly workers in the nation -- a dubious title it shares with Mississippi (money.cnn.com). Economists have to admit that Texas has higher job growth than the rest of America. But it needs lots of new jobs just to keep up with its rising population. Texas' unemployment rate is 8.2% -- lower than the nation's, but higher than 25 other states. As an economic student, I feel really upset when unfair things are still happening in America. Economy is such a complicated and dirty world and it blinds some peoples eyes for the benefit of making money. Rick Perry gets what he needs over so many peoples pain, hardworking. What will America look like if Perry becomes the President of USA? Krugman thinks America will become a bidness community when Perry becomes the President. I wish as an economist, I could help the immigrants Mexicans achieve the equality in wage and in housing conditions. I think it is an impossible job because this world is not such a fair place.

CITIED PAGE
Jacobs, Rick. "Income Gap Widens: Census Finds Record Gap Between Rich And Poor."Breaking News and Opinion on The Huffington Post. TheHuffingtonPost.com, 28

Sept. 2010. Web. 02 Oct. 2011. <http://www.huffingtonpost.com/2010/09/28/income-gapwidens-census-_n_741386.html>. Krugman, Paul. "The Texas Unmiracle." The New York Times - Breaking News, World News & Multimedia. 16 Aug. 2011. Web. 02 Oct. 2011. <http://www.nytimes.com/2011/08/15/opinion/the-texas-unmiracle.html? _r=2&ref=paulkrugman>. Krugman, Paul. "Whats The Matter With Texas?" Economics and Politics by Paul Krugman - The Conscience of a Liberal - NYTimes.com. The New York Times Company, 25 Sept. 2011. Web. 02 Oct. 2011. <http://krugman.blogs.nytimes.com/page/2/>. Luhby, Tami. "Rick Perry and His Texas Jobs Boom: The Whole Story - Aug. 12, 2011."CNNMoney - Business, Financial and Personal Finance News. Time Warner Company, 12 Aug. 2011. Web. 02 Oct. 2011. <http://money.cnn.com/2011/08/12/news/economy/perry_texas_jobs/index.htm>. Newman, Rick. "How Rick Perry Created Jobs in Texas - Rick Newman (usnews.com)." US News & World Report | News & Rankings | Best Colleges, Best Hospitals, and More. 2011 U.S New& World Reports, 16 Aug. 2011. Web. 02 Oct. 2011. <http://www.usnews.com/news/blogs/rick-newman/2011/08/16/how-rick-perry-createdjobs-in-texas>.