Lawmakers’ agenda endangers the Texas miracle
Controversial initiatives could lead to diminished economic output
Both qualitatively and quantitatively, those of us who do business in the Lone Star State have long appreciated the welcome mat of a thriving Texas economy in launching and growing our businesses. If you look at the numbers, Texas has been “Top of the Tops” in business over the last 10 years, according to CNBC, which has scored all 50 states for the last decade on measures such as workforce, cost of doing business and infrastructure. Forbes in 2016 ranked Texas and its $1.6 trillion economy in the No. 1 spot for overall economic climate.
When business does well, in general, Texans do well, and that has been the guiding principle in creating a political and regulatory climate allowing the state to economically outperform the nation as a whole. However, if the current performance of the Texas Legislature and its agenda is an indicator of future results, the Texas miracle is in danger of being snuffed out.
Lawmakers ended their most recent regular session pushing through controversial issues like Senate Bill 4, which beyond entangling the state in a likely lengthy legal battle can have disastrous effects on the immigrant workforce vital to the Texas economy. It would be foolish to assume that mass deportations of workers in the shadows — who often are gainfully employed in agriculture, manufacturing or construction, and contributing to the Texas economy — would have minimal impact on the state’s GDP.
Such policies are especially foolhardy considering the demographic winter that is rolling through the developed world — including the United
States. The U.S. birth rate is now 1.9 births per female, well below replacement level. Adding to the domestic workforce shortage, 10,000 baby boomers are retiring every day.
Instead of promoting policies that inhibit or reverse the flow of human capital, such as Senate Bill 4, we should be looking for ways to protect and promote the workforce of the future.
Additionally, national debate continues to focus on the construction of a costly border wall while ignoring more costefficient, effective and businessfriendly solutions from people who live and work along the border, and those who protect it. Texas and the nation need an immigration policy that addresses America’s need for workers.
States that press forward with business-crippling initiatives while subordinating legislation business leaders deem important, like property tax reform, do so at their own peril. Arizona, for example, with its controversial “Papers Please” law passed in 2010 experienced millions of dollars in lost tourism as trade groups and others canceled scheduled conventions in the state. Agriculture and construction companies struggled to find needed labor. Some estimates indicate that more than 200,000 immigrants left Arizona, and like a rock thrown in the middle of a calm pond, ripple effects reverberated across the state. Suddenly, fewer people were buying food, clothes and gas or going out and socializing. Businesses of every type felt the impact.
In Texas, lawmakers also put their energy into legislation on social issues like transgender bathroom access and abortion, and similar laws already are being challenged in other states. When state leaders tackle these national attention-grabbing issues, it negatively impacts the Lone Star State’s perception as businesses make start-up or relocation decisions based on whether Texas is inclusive enough to allow them to attract the broadest range of workers. Worse, they’re expending political capital on these divisive issues at the expense of policies that actually promote economic growth.
Even in highlighting the state’s Top of the Tops ranking, CNBC noted concerns about Texas’ “quality of life” score, which includes factors like inclusiveness and removing barriers that stymie the attraction of skilled workers. SB4 does nothing to improve that.
Lawmakers have an opportunity to do more harm — or redeem themselves — during a special session that will begin in July. They can continue to trifle with divisive issues that put the Texas economy in peril, or they can focus on an agenda that places Texas business priorities and economic growth front and center. The eyes of the business community are on Austin, and the Texas miracle is at stake. Nixon is chief executive of International Bancshares Corp. and International Bank of Commerce in Laredo.