Thursday, April 22, 2010

The Texas Trade Surplus

From a essay on why Texas is doing so much better than the rest of the nation:

....(Texas) surpassed California several years ago as the nation's largest exporting state. Manufactured goods like electronics, chemicals, and machinery account for a bigger chunk of Texas' exports than petroleum does. In the first two months of 2010, exports of stuff made in Texas rose 24.3 percent, to $29 billion, from 2009.

That's about 10 percent of the nation's total exports. There are more than 700,000 Texan jobs geared to manufacturing goods for export, according to Patrick Jankowski, vice president of research at the Greater Houston Partnership. "A lot of it is capital goods that the Asian, Latin American, and African [countries] are using to build their economies."

So....should these Asian, Latin American, and African countries worry about their trade deficit with Texas? 
Heck no. 

What matters is how much "stuff" you swap, and who you're swapping with doesn't matter.  It's all about trades per hour.   
Should Fort Worth residents worry about their trade deficits with cities on the other side of Highway 360 ?
Should Texas residents worry about their trade deficits with states on the other side of the Red River?
How about countries on the other side of the Rio Grande? 
Or the Pacific? 

The lines of latitude and longitude of the factory  The more you restrict trade, the fewer options your manufacturers have for sourcing raw materials and for exporting finished products. 
Penalizing trade serves no purpose but to negate the gains provided to society by technology, labor, ingenuity, determination and progress. 
If Target or J.C. Penney has a sale on items that you want to purchase, would you avoid those stores because the low prices aren't fair to Wal-Mart? 


TarrantLibertyGuy said...

Restrict trade with Oklahoma? It sounds so appealing, though!!

The Whited Sepulchre said...

YES ! We have to protect jobs in Gainesville ! Build a border fence ! Keep the Okies out !

TarrantLibertyGuy said...

Ah. All this time I thought they were talking about the wrong river! The wall building so popular in Tea Party Rhetoric has perfect logic now.