DAILY COURT REVIEW

The Economist

Michael — Fri, 17 May 2013 05:03:00 GMT

A whale of a shale.

Texas Public Policy Foundation

Michael — Wed, 15 May 2013 05:03:00 GMT

California schools Texas on which policies to avoid.

The Economist

Michael — Mon, 06 May 2013 05:03:00 GMT

Too much info too fast makes for volatile markets.

Commentary from the Texas Public Policy Foundation

Michael — Thu, 02 May 2013 05:03:00 GMT

The Medicaid expansion distraction.

The Economist

Michael — Fri, 26 Apr 2013 05:03:00 GMT

US and Texas economic performance is examined.

Overly restrictive licensing inhibits growth

Michael — Thu, 18 Apr 2013 05:03:00 GMT

by Jeanette Moll
Texas Public Policy Foundation

Last year, Texas was ranked with the 17th highest burden occupational licensing imposes on the workforce. A full one-third of low-income occupations in Texas are licensed.

The Texas Public Policy Foundation and Right on Crime have long alerted policymakers to the inherent issues with overusing occupational licensing. This practice inhibits economic growth, restricts employment, and can serve as a form of economic protectionism.

In fact, studies have pointed to billions in losses each year attributable to occupational licensing and the lower rates of employment in licensed professions as compared to unlicensed professions.

Occupational licensing can and does serve a public purpose—specifically, when there is an information imbalance or public safety issue that occupational licensing can protect against.

But when we’ve begun licensing hair shampooers and equine teeth floaters, we have to ask ourselves what purpose our occupational licensing system serves: protecting the public or protecting established industries?

Another important question that should be put to each occupational licensing scheme is whether restrictions on applicants with criminal histories play a role in protecting public safety. An occupational license for an ex-offender should take into consideration whether the offense on the applicant’s record is related to the profession or the situations in which the profession would lead the applicant.

A recent article from Austin-American Statesman exemplifies the importance of stepping away from overly restrictive occupational license.

A security alarm installer, Adam Waters, recently moved to Texas from North Carolina. He was apparently so skilled at his profession (not to mention his 25 years of experience) that he worked on the North Carolina Governor’s home, the home of a mayor, and even some buildings on local air force bases.

But Texas denied him a license to install alarms in our state. The reason given was that he received deferred adjudication after failing to pull over in Lee County. (He claims he didn’t hear or see the police officers.)

Mr. Waters clearly messed up. He shouldn’t have been speeding and he shouldn’t have failed to pull over immediately. No one would condone his actions.

But does this incident make him such a risk that he’s unable to obtain a license to install security systems in Texas? Does this one incident eviscerate 25 years of experience in his occupation? Did the licensing agency here in Texas check and see if he had ever incurred any complaints in relation to his work in those 25 years? Is a Texas agency that doles out occupational licenses a better judge of character than the Governor of North Carolina?

Or have we gone just a bit too far with occupational licensing in Texas?

The Economist

Michael — Fri, 12 Apr 2013 05:03:00 GMT

Cellular telephones: Fabulous at forty

The Economist

Michael — Thu, 04 Apr 2013 05:03:00 GMT

Too much and too little.

Court ruling puts birds rights ahead of people

Michael — Thu, 04 Apr 2013 05:02:00 GMT

Need for water is at crux of court's decision.

The Economist

Michael — Tue, 02 Apr 2013 05:03:00 GMT

The Lone Start state has retained its top status.

Editorial writings from Texas newspapers

Michael — Mon, 01 Apr 2013 05:03:00 GMT

Texas editorials.

It's time to move toward a 'Texas Solution'

Michael — Sat, 23 Mar 2013 05:03:00 GMT

Adding an option to insure newly eligible persons with a private insurance exchange enhances the already substantial outcomes and economic benefits of expanding Medicaid under the Affordable Care Act.

The Economist

Michael — Mon, 11 Mar 2013 05:03:00 GMT

Lets look at the Dow now.

Expanding Medicaid effects many across Texas

Michael — Fri, 01 Mar 2013 06:03:00 GMT

By M. Ray Perryman
The Perryman Group

Several months ago, my firm released a study quantifying the benefits for Texas of expanding Medicaid under the Affordable Care Act (ACA). We estimate that the total gains for the state over the first 10 years of implementation would be $255.8 billion (in 2012 dollars) in output (real gross product) and more than 3 million person-years of employment (about 300,000 per year). In addition, for every $1 the State puts into the program, $1.29 is returned when taxes associated with the gains in business activity are considered. These benefits are after adjusting for likely effects if these State funds had been used in other ways.

The benefits of participating in the Medicaid expansion stem from health care spending, federal funds inflow, reduction in costs for uncompensated care and insurance, and enhanced productivity from a healthier population. Access to health care would be improved for some of the state’s most vulnerable populations, increasing their quality-of-life and productivity. At the same time, the economy would receive a sizable stimulus.

Looking at the gains by industry, it’s not surprising that the largest increase falls within the health services segment ($70.8 billion in output and 988,400 person-years of employment over the first 10 years of implementation). The retail trade industry group would see gains over the first 10 years of $54.2 billion in output and 962,600 person-years of employment. Every industry group would be positively affected: business services; manufacturing; finance, insurance, and real estate; agriculture; and others.

In a new study released last week, we took the analysis a step further, calculating the gains for every metropolitan area, region, and legislative district in the state. Local areas across the state would clearly receive an economic boost if Texas expands Medicaid coverage under the ACA. We found that increased economic activity over the first 10 years would range from just over $1 billion in smaller population centers to more than $64 billion in the largest.

More specifically, an increase in cumulative output in the $1 billion-$2 billion range over the first 10 years of implementation is likely for Midland, Odessa, Sherman-Denison, Victoria, San Angelo, Texarkana, Laredo, Wichita Falls, College Station-Bryan, and Abilene. Over $2 billion and less than $5 billion for Longview, Waco, Amarillo, Brownsville-Harlingen, Beaumont-Port Arthur, Killeen-Temple-Fort Hood, Lubbock, and Tyler. Corpus Christi, El Paso, and McAllen-Edinburg-Mission fall between $5 billion and $10 billion.

Austin-Round Rock-San Marcos would see gains in output over the first 10 years of an estimated $15.5 billion, with $22.1 billion for Fort Worth-Arlington and $22.5 billion for San Antonio-New Braunfels. Dallas-Plano-Irving comes to $56.5 billion, and Houston-Sugar Land-Baytown is $64.1 billion. Rural areas of the state gain $14.8 billion.

The bottom line is that benefits are substantial for every one of the state’s regions, metropolitan areas, and counties. Each legislative district (House, Senate, and Congressional) also has a sizable stake in Medicaid expansion, including thousands of jobs. With our most recent analysis (which, by the way, you can download from our website at www.perrymangroup.com), you can see how Medicaid expansion would affect your hometown so you know what’s at stake.

While Texas is still holding out, a number of other states have recently decided to participate in the expansion, including several with politically conservative leadership (Florida, New Jersey, Ohio, Arizona, Michigan, and others). In addition, resolutions or other expressions of support have been passed in favor of Texas participation by many of the largest counties including Dallas, Harris, Bexar, Travis, and others.

While the Medicaid system and ACA are not perfect, they are key aspects of the current health care environment in which Texas must function. I think we would all like to see the Medicaid system and ACA reformed to enhance efficiency and sustainability, but not participating in this expansion is simply not rational from an economic perspective. No matter your income level, political persuasion, racial and ethnic background, area in which you live, educational attainment, occupation, or anything else you care to name, you will see tangible benefits if Texas participates in this program.

Dr. M. Ray Perryman is President and Chief Executive Officer of The Perryman Group (www.perrymangroup.com). He also serves as Institute Distinguished Professor of Economic Theory and Method at the International Institute for Advanced Studies.

The Economist

Michael — Thu, 21 Feb 2013 06:03:00 GMT

by M. Ray Perryman
The Perryman Group

Import and export activity is an essential aspect of optimizing economic performance. By allowing each nation to focus resources on those goods and services where it has a competitive advantage and import other products, foreign trade helps improve business conditions and quality of life around the globe.

From the beginnings of such exchanges centuries ago, there have been tariffs, quotas, and other impediments to free trade. Over time, many of these have been eliminated through free trade agreements. It is a widely accepted economic principle that free trade is beneficial from both the import and the export side, and additional efforts to enhance exchange are worthy of consideration. While the world has become highly integrated and complex, with extensive intra-industry trade in addition to that between sectors, the basic principles remain in place.

The Perryman Group was recently asked to examine the potential impact of a Transatlantic free trade agreement between the United States and the European Union on business activity in Texas. (You can access the full report on our website at www.perrymangroup.com.) This analysis revealed that the state would likely see significant economic benefits, with additional potential gains stemming from productivity enhancements and efforts to eliminate non-tariff barriers to trade.

The volume of trade between the United States and the European Union has risen markedly over the last decade, and Texas has significant trading relationships with many EU countries. In fact, five of Texas’ top 20 exporting countries are EU members (Netherlands, Belgium, United Kingdom, France, and Germany). In 2012, Texas exports to these countries totaled over $24.5 billion. Five of the top 25 countries from which Texas imports are EU countries including Germany, United Kingdom, France, Italy, and Netherlands. Texas’ imports from these countries in 2012 were almost $19.9 billion.

Eliminating tariffs on goods traded between the United States and the European Union would lead to an expansion in international commerce. In addition, there are typically efficiencies gained when costs and barriers to trade are reduced and industries optimize production patterns. A Transatlantic free trade agreement has the potential to enhance the economic performance of all of the countries involved, and Texas would realize a significant portion of the gains.

If all tariffs are removed on goods traded between the United States and the European Union, we estimate that the potential gains in business activity in Texas include $9.1 billion in output (gross product) each year and 89,600 permanent jobs (measured as of 2020 to allow time for market adjustments, but in constant dollars to account for the effects of inflation). Even if tariffs are eliminated, however, there are still impediments such as excessive or inconsistent regulation or complex customs processing.

Full removal of non-tariff obstacles is not possible due to a variety of internal policy, precedents, contractual commitments, and other factors. Nonetheless, working toward reducing such constraints has the potential to further enhance economies on both sides of the Atlantic. If half of non-tariff barriers are eliminated in a harmonized manner, we estimate that economic benefits for Texas in 2020 would include $17.0 billion in gross product (representing more than 0.8% of expected aggregate output at the time), and $11.0 billion in personal income every year, as well as 166,400 jobs. This additional activity generates significant tax receipts of some $581.4 million for the State and $344.1 million for various local taxing authorities.

Clearly, a Transatlantic free trade agreement between the United States and the European Union would lead to sizable gains for the economies of all nations involved. Given the strength of Texas’ trading relationships with EU countries and volume of export/import activity, the Lone Star State would certainly benefit.

The EPA's dirtly little secret: The air is really clean

Michael — Thu, 21 Feb 2013 06:02:00 GMT

Pollution has dropped 60 percent since 1970.

Hear from the president

Michael — Fri, 08 Feb 2013 06:03:00 GMT

Does Obama respect the Constitution?

Medicaid will grow regardless of what else happens

Michael — Tue, 05 Feb 2013 06:02:00 GMT

Without expanding Medicaid to cover low-income, non-disabled adults, the implementation of ObamaCare will nevertheless cause enrollment to rise.

The Economist

Michael — Fri, 01 Feb 2013 06:03:00 GMT

Immigration reform is many-faceted issue.

Senators, protect us from the EPA

Michael — Thu, 24 Jan 2013 06:03:00 GMT

Among the last U.S. Senate’s graveyard of stalled budgets, authorizations and still other urgent measures were some 36 regulatory-reform bills passed by the House with bipartisan support.

The Economist

Michael — Tue, 22 Jan 2013 06:03:00 GMT

Economic forecast for Texas' largest cities.

Despite alarm, fiscal cliff did some good

Michael — Fri, 18 Jan 2013 06:03:00 GMT

Despite the hoopla, the fiscal cliff’s final act did have a few positive aspects.

Texas poised to be model for higher education reform

Michael — Thu, 17 Jan 2013 06:03:00 GMT

In higher education, Texas’ struggles are America’s struggles. At the same time, the 83rd Legislature can make Texas’ solutions America’s solutions.

Keep Texas from becoming like Washington D.C.

Michael — Fri, 04 Jan 2013 06:03:00 GMT

Without strong systemic protections in place, governments have a tendency to grow and consume everything in their path, like a fire, until the situation becomes untenable.

The Economist

Michael — Mon, 31 Dec 2012 06:03:00 GMT

The 2013 economic forecast for Texas.

Bork: An intellectual feast and a call to arms.

Michael — Mon, 31 Dec 2012 06:02:00 GMT

A look back at the former SCOTUS nominee.

The Economist

Michael — Thu, 20 Dec 2012 06:03:00 GMT

Economic outlook for 2013.

Unions, welfare and their impact on votes

Michael — Thu, 20 Dec 2012 06:03:00 GMT

Demographics don't tell the real story on election results.

It's time to deal with the regulatory cliff

Michael — Wed, 19 Dec 2012 06:02:00 GMT

Among the outgoing Senate’s graveyard of stalled budgets, authorizations, and other urgent measures are some 36 regulatory-reform bills passed by the House with bipartisan support. These bills are needed to rein in a regulatory spree that is crushing business activity and unnerving investors. They deserve first priority in the new Senate — but the newly elected body, with two fewer GOP members than its predecessor had, is likely not interested.

The Economist

Michael — Fri, 14 Dec 2012 06:03:00 GMT

Why the gulf between oil and gas prices?

Who really needs to study western civ?

Michael — Fri, 14 Dec 2012 06:02:00 GMT

Keys to future successes can be found in past successes.

When unions are government sponsored cartels

Michael — Thu, 13 Dec 2012 06:03:00 GMT

Note: This article originally appeared at National Review Online.

Key education issues that Texas must tackle

Michael — Fri, 07 Dec 2012 06:03:00 GMT

Texas currently lags the nation in some key educational measures.

The Economist

Michael — Fri, 16 Nov 2012 06:03:00 GMT

Is this the new American Dream?

Manmade disaster is coming after Sanday

Michael — Thu, 08 Nov 2012 06:02:00 GMT

Attempts to prevent price gouging could backfire.

Opinions from around Texas

Michael — Wed, 24 Oct 2012 08:37:00 GMT

Editorials from select Texas newspapers.

The Economist

Michael — Tue, 23 Oct 2012 05:03:00 GMT

A meeting of the theoretician and empiricist minds

We are set up for more pain than necessary

Michael — Mon, 24 Sep 2012 05:03:00 GMT

Monetary authorities have recently added a new round of expansionary policy, but it is unlikely to have a major impact in and of itself.

The Economist

Michael — Tue, 04 Sep 2012 05:03:00 GMT

Which prevails, Golden State or Lone Star State?

Protectionism is environmentalists' sword

Michael — Fri, 31 Aug 2012 05:03:00 GMT

Recently, there has been a growing trend among environmentalists to use the tools of protectionism as a means of limiting energy production.

State tax rates do impact economic growth

Michael — Tue, 28 Aug 2012 05:03:00 GMT

As a former California lawmaker who recently moved to Texas—from a "high rate" income tax state to a state with no income tax—I respectfully disagree with the claim that the economic conditions in the Golden State are as good, if not better than they are in the Lone Star State.

D.C. Court correct on cross-state air rules

Michael — Wed, 22 Aug 2012 05:03:00 GMT

Law gives states clear authority on air standards.

Calif. is in the industrial age, Texas is in the tech age

Michael — Mon, 20 Aug 2012 05:03:00 GMT

The US Census Bureau tells us that almost two million more Americans moved out of California than moved into California from 2000 to 2010; New York lost a net of 1.57 million people. Texas has gained almost 800,000 people in the last decade.

The Economist

Michael — Fri, 17 Aug 2012 05:03:00 GMT

There's still a long way to go.

Texas Newspapers

Michael — Wed, 15 Aug 2012 05:03:00 GMT

Editorials from around Texas.

The Economist

Michael — Fri, 10 Aug 2012 05:03:00 GMT

Where's the growth?

If program expands, Texans will be shorted

Michael — Tue, 07 Aug 2012 05:03:00 GMT

Texas can design a program that does everything the ObamaCare Medicaid expansion won’t.

The Economist

Michael — Fri, 03 Aug 2012 05:03:00 GMT

Texas should outperform rest of US.

Texas needs more options for parents and students

Michael — Fri, 03 Aug 2012 05:01:00 GMT

Milton Friedman and school choice.

The longterm outlook for Texas metro areas

Michael — Thu, 26 Jul 2012 05:03:00 GMT

The Perryman Group’s recent long-term outlook calls for growth.