There’s a reason for the success in Texas

  • By Tom Hoban Realty Markets
  • Friday, May 2, 2014 4:41pm

On a recent business trip to San Antonio, I fell into a conversation with locals and things veered a bit into what they call “the movement.”

The state constitution of Texas contains language, they say, that allows it to secede from the United States of America by a simple legislative vote.

With a unique history that includes being a republic for a time, Texas joined the Union somewhat on its own terms so they argue that they can leave without much fuss.

That angle is being examined carefully by many. On its own, Texas would probably thrive and that’s the prize secessionists are after. It’s population is a little larger than Australia’s at 26 million versus 23 million.

If it were a country of its own, it would rank 13th in the world for gross domestic product and provide enough tax revenue to replace federal dollars that would evaporate if it left, they argue.

Its state government is solvent, it can grow almost every climate-variety of crops.

Texas provides a disproportionately large number of sons and daughters who serve in the military.

Secessionists figure that an independent Texas would stand to control its own destiny on issues important to Texans from border patrol and immigration to property and gun rights.

Without being held back by the rest of the country, Texas could create an even more powerful economic and jobs juggernaut.

Setting aside its political undertones, the movement does draw attention to what Texas is doing right in supporting the middle class with jobs.

Texas’ economy is importing businesses at a faster pace than any other state.

As reasons for this, proud Texans point to California and northern states laden with heavy tax burdens, a future that looks like it will heap on more, and what they consider excessive government regulation.

Its unemployment rate may dip under 5 percent this year while the rest of the country hovers between 7 percent and 10 percent still. Investment is robust, suggesting a bright tomorrow as well.

So how did it get into this favorable situation? Business leaders say it’s because Texas has remained largely consistent and disciplined in its political policies and attitudes.

That stability and predictability allows private enterprise to make investment decisions both short- and long-term in a more certain environment. Their state government is balanced, the ideal circumstance to manage government growth. Texas isn’t bashful about being Texas either.

From the governor to local chambers of commerce, they actively recruit businesses to their state. Northerners and Californians will argue these rogue Southerners are being unpatriotic to even think about leaving.

But those bent on secession turn the question around and ask why the rest of the country is leaving the values of liberty, private enterprise, and effective-but-limited government that were once shared across the country.

Their movement isn’t likely to succeed.The feds point to the Civil War as the trump card to any state’s desire to break free of the Union.

But it is spreading to other nearby states and is reflective of the growing differences in attitudes and values in our country.

Doing business in Texas is refreshing, too. There’s a can-do culture and streak of independence that wakes up areas of the brain worn down in recent years and presents a model of how other states might behave if they want the same outcome.

Tom Hoban is CEO of The Coast Group of Companies. Contact him at 425-339-3638 or tomhoban@coastmgt.com or visit www.coastmgt.com.

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