The Texas economy has experienced rapid growth and decline throughout history. This essay will chronologically explore the circumstances that put the state of Texas on the path to becoming a booming economy. It all starts with the first settlers who came to Texas to farm the land for cotton and the cowboys who herded cattle heading north. Discovering the oil that redefined Texas' leading industry for the next few decades until the recent technology boom. Texas has always been a beacon for immigrants seeking opportunities to earn a living through hard work. This essay will conclude with predictions about Texas population and climate change, and what they hold for the future. The discovery of oil in East Texas played a huge role in the booming Texas economy during the 1930s. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay What was once a predominantly agricultural state, Texas would soon be pushed into the 20th century thanks to the industrial sector that was advancing due to oil production that helped provide mechanical labor that had not been widely used before of the 1930s in Texas. With mechanical labor, production skyrocketed. For example, the invention of the tractor that could produce more bodies than a team of men working on a farm. However, this took the farm worker away from work but, from a progressive point of view, it certainly helped industrialize the Texas economy. What follows is that the working class suffers because of progress. As McFarlane explains, “Despite the unprecedented size of the East Texas oil field, so many people came looking for work that contractors were able to cut wages. In the same way that a “surplus population” made Southern agriculture dependent on cheap labor, oil contractors found that the underemployment of the Great Depression provided them with their own supply of cheap labor. "(865). In terms of Schumpeter's theory of creative destruction, the mass production of oil in Texas caused a disruption to the cotton and cattle industries. These two industries, once prevalent, would soon decline as people they flocked to the booming cities that sprung up in East Texas. Moving forward in time, the enactment of the NAFTA trade agreement also had its impact on the Texas economy, which is still a source of controversy in the political economy. Today NAFTA is the free trade agreement between the United States, Canada and Mexico. Since Texas borders Mexico, this trade agreement has played the largest role in the Texas economy. outsourcing Mexico's cheap labor to produce industrialized goods from across the border that could then be easily transported to the United States because of the free trade agreement. This caused a disruption to the working class in Texas as they soon suffered a loss of industrial jobs. As Klier and Rubenstein demonstrate in reference to the automotive industry: “Among the five major Mexican manufacturers, in the high-end segment VW had 82% of its North American production in Mexico in 2016, while the shares of the three Detroit manufacturers ranged from 13% to 20%. percent. Nissan, which was between the extremes, with 45 percent of its North American production in Mexico in 2016, more than doubled the share of its North American production located in Mexicoin 1995.” (6). This causes political tensions between the United States and Mexico begins to see the increase in outsourcing of cheap labor and even illegal immigration at the border. Racial tensions and xenophobia soon follow. The most current wave of creative destruction in the Texas economy comes from high-tech industries. Texas is home to some of the most advanced medical facilities. Additionally, the economy is also affected by the prevalence of the IT sector in the San Marcos area. Austin. In 2002, the Texas government allowed the expansion of electricity companies by allowing consumers to choose their own provider. What followed was a competitive market that drove down the cost of electricity large companies that want to locate in an area where electricity costs are low. As Preuninger explains, “In Texas, both electricity generation operations and plant investments are driven by prices. Wholesale and retail prices are set by competitive market rates and, in turn, determine market rates. The role of the wholesale market is to enable trading between generators, retailers and other financial intermediaries for the supply of short- and long-term electricity. …electricity is almost always on the short list of cost considerations when companies look for office locations, manufacturing facilities and e-commerce hubs. With Texas' competitive market, businesses gravitate here for its low prices, reliability, and accessibility. …these facilities require a tremendous amount of power from the state grid – and they come here because they know they can get it cheaply and reliably. " (42). The Texas economy is facing multiple threats that will affect the growth of the business sector. The main threats Texas faces are overpopulation and lack of resources which can impact the economy with the growing need to provide more services such as water, electricity grid, roads and bigger schools The population boom in Texas requires action to avoid the closure of major services due to the pressure to provide more electricity and clean water as the population grows. is growing. Additionally, the number of cars in Texas is increasing, so the need for larger roads is also a priority to plan for. Urbanization in Texas has changed the future of the state as more and more people move into Texas, growth pressure in major metropolitan areas such as Dallas-Fort Worth, Houston, Austin and San Antonio continues to increase This will cause lawmakers to change their strategy in each city to adapt to the population boom in order to meet the needs of the real estate sector. In recent years, the Texas economy has faced disastrous impacts from climate change, a threat that is slowly increasing every day. In recent years, high temperatures are causing serious damage to the Texas economy. In particular, hurricanes like Harvey have had a devastating impact on Texas, causing enormous damage to people and businesses. These hurricanes brought rising waters and powerful winds that destroyed everything in their path. Climate change, according to multiple scientific facts, states that the earth is warming, and because of this there has been an increase in deadly hurricanes in the Gulf of Mexico. This is because hurricanes form and strengthen in warm waters. Water levels on the Texas coast have also risen significantly in recent years. Texas will be one of the states that will significantly feel the impact of climate change. According to The HoustonChroncile “Among the study's findings, Texas will likely see by 2050: the number of extremely hot days per year – with temperatures above 95 degrees – more than double, from an average of 43 to 106. About 4,500 additional deaths linked warm every year, of which nearly half will occur in the next 5 to 15 years. (For comparison purposes, the study points out that in 2013 there were about 3,400 total motor vehicle deaths in Texas.) A sea level rise of up to 2 feet in Galveston. A $650 million per year increase in storm-related losses along the coast, bringing the state's total annual damages to more than $3. 9 billion. A marked decrease in both worker productivity and crop yields. (Baddour 2016). Air pollution released from factories is also causing climate change by increasing the percentage of poisoned air and oxygen. This problem also impacts people's health and causes lower productivity and a higher budget to provide medical care in hospitals and other medical centers. It is very important to prepare for climate change before it causes further damage to the economy. Texas can address this problem by educating and raising awareness about climate change and the potential threat it can pose to everyone. In recent years, Texas has faced numerous disasters that have taken a toll on the economy. After Hurricane Harvey, people lost their belongings, including homes and cars. This loss impacted a certain industry in that area. Despite the trauma and headaches, the auto industry immediately boomed as people bought new cars after the flood damage. According to The Houston Chronicle, “While devastating for Southeast Texas cities, counties and families, it created a small macroeconomic boom for the state. Because so many Texans lost their cars to the floods, there was a short-term boom in new car sales, leading to a 13% growth in motor vehicle tax revenue last quarter. Ditto for a small increase in sales tax revenue, as flood victims rushed to replace items lost in the storm” (Baddour 2016). Another issue facing the budget crisis is the financing of government programs. The Texas Department of Health and Human Services is one of the major branches serving low-income families in Texas. According to The Houston Chronical “during a special session called by Gov. Greg Abbott over the summer, state lawmakers moved another $500 million from the Texas Health and Human Services Commission to pay for public education programs. As a result, lawmakers could face a $2 fine. $5 billion Medicaid bill shortly after their meeting again in Austin in 2019. Then there are additional drains on Texas coffers resulting from Hurricane Harvey recovery efforts, Hegar said. That's bad news for lawmakers, given the comptroller's prediction that the state will only have a "starting balance" of $94 million when lawmakers convene in 2019. By comparison, lawmakers had a starting balance of $880 million of dollars in 2017, which was ultimately a difficult year for the state. budget. Two years earlier, lawmakers enjoyed a $7 tax. Initial balance of 3 billion. ” (Baddour 2016) The Texas Tomorrow Fund is an educational program to help fund public college tuition and one of the largest programs in Texas. There is no certainty that this program will continue. According to the Houston Chronicle, “The Texas Tomorrow Fund, a program of.