President Obama loves to boast about his record as a job creator. The increase in employment rates was one of the highlights of the President’s year-end address last week. He stated that 2014 was the "strongest year for job growth since the 1990s."

What is owed the credit for the economic recovery? Its a place called Texas with low taxes, little of the government regulation that Obama loves, and generally conservative fiscal policies.

Since the recession began in 2007, more net jobs have been created in Texas than in all other states combined. Texas created 1.1 million net jobs since the recession, while the rest of the country has lost 349 thousand jobs.

Without Texas, the U.S. economy looks bleak. According to the Texas Public Policy Foundation, Texas alone posted nearly 12% non-farm employment growth over the past seven years, while the rest of America (without Texas) has managed to lose jobs.

What has made Texas so successful at driving the economic recovery? The common sense solutions that liberals have been railing against for years: right-to-work legislation and low taxes. Texas does not collect individual income tax or corporate income tax. These effective conservative policies resulted in The Mercatus Center naming Texas the freest labor market in the country.

The success in Texas is no surprise to economists who have watched the state remain number one in job creation throughout 2014. Texas industry has helped create higher-income jobs, which means increased spending. Workers with higher salaries tend to spend more money, further driving job growth in other sectors, like retail, leisure, and hospitality. The high employment rates in Texas have also led to a recovery in the local real estate market – an area where many other states continue to struggle with low property values and foreclosures.

Contrary to the President’s belief about his job creation abilities, the American economy did not improve with higher taxes and more regulation. Without Texas, there is no real net job growth to speak of in America. But, surely that won't stop the President from taking credit. Someone should just remind them the state driving all this job growth has a strong foundation of conservative fiscal values.


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