Economy of Texas facts for kids

Economy of Texas

As a stand-alone country, Texas would be the 12th largest economy in the world.
Statistics
GDP	$1.648 trillion (2014)
GDP per capita	$55,426 (2014)
Population below poverty line	15.8% (16.5% considering cost of living)
Gini coefficient	0.474
Labor force	13,126,900 (January 1, 2015)
Unemployment	4.4% (January 1, 2015)
Public finances
Revenues	$71.5447 billion
Expenses	$71.4094 billion

The economy of Texas is one of the largest economies in the United States. As of 2015, Texas is home to six of the top 50 companies on the Fortune 500 list and 51 overall, (third most after New York and California). In 2012, Texas grossed more than $264.7 billion a year in exports—more than exports of California ($161.9 billion) and New York ($81.4 billion) combined. As a sovereign country (2014), Texas would be the 12th largest economy in the world by GDP (ahead of South Korea and Australia).

Texas has a gross state product of $1.648 trillion (2014) the second highest in the U.S. Texas's household income was $48,259 in 2010 ranking 25th in the nation. The state debt in 2012 was calculated to be $121.7 billion, or $7,400 per taxpayer. Texas has the second largest population in the country after California.

History

Texas compared to other countries GDP is in the same range as Canada, Australia, Russia, the Netherlands, or South Korea (corresponding with the Department of Finance figures in 2005).

Boom periods of the four major industries that built the early Texas economy.

Historically four major business enterprises shaped the Texas economy prior to World War II: cattle and bison, cotton, timber, and oil. The first enterprise to enjoy major success in Texas was cattle and bison. In the early days of Anglo-American settlement furs and hides were the major products derived from cattle. Beef was not particularly popular in the United States. However soon Texas entrepreneurs pioneered the beef industry and demand steadily increased. The cattle industry enjoyed its greatest financial success in the later 1870s and 1880s.

Cotton production, which had been known in Texas since Spanish times, gradually increased throughout the 19th century. By the early 20th century Texas had become the leading cotton producer in the nation. By the 1920s the cotton industry was past its peak as government regulation and foreign competition took their toll.

Main page: History of Texas forests

The forests of Texas have been an important resource since its earliest days and have played an important role in the state's history. The vast woodlands of the region, home to many varieties of wildlife when Europeans first arrived, provided major economic opportunities for early settlers. They today continue to play an important role economically and environmentally in the state.

The densest forest lands lie in the eastern part of the state. In particular the Big Thicket region, just north of Houston and Beaumont, has historically been home to the most dense woodlands. The Big Thicket was mostly uninhabited until heavy settlement from the U.S. began in the mid-19th century, and was even used as a refuge by runaway slaves and other fugitives. The Rio Grande valley in South Texas was home to a large palm tree forest when Spaniards first arrived, though today very little of it remains.

The development of railroads in the eastern part of the state during the mid-19th century led to a boom in lumber production in the 1880s. This era of financial success lasted approximately 50 years finally coming to an end as Texas' forests were decimated and the Great Depression dropped prices.

Main page: Texas Oil Boom

In 1901 the Gladys City Oil, Gas, and Manufacturing Company struck oil on Spindletop Hill in Beaumont. Though petroleum production was not new, this strike was by far the largest the world had ever seen. The find led to widespread exploration throughout Texas and neighboring states. By 1940 Texas was firmly established as the leading oil producer in the U.S.

The headquarters of Texas Instruments

Texas remained largely rural until World War II though the success of the petroleum industry rapidly expanded the economy with heavy industry of many types taking root. The second world war created tremendous demand for petroleum and a variety of products that Texas was in a unique position to provide. By the end of the war Texas was one of the leading industrial states and the population had become predominantly urban. Additionally the economy had diversified sufficiently that, though petroleum was still the largest sector by the end of the war, the business community in the state was truly diverse.

The Texas economy today relies largely on information technology, oil and natural gas, aerospace, defense, biomedical research, fuel processing, electric power, agriculture, and manufacturing.

Exports

Houston Ship Channel

In 2014, for the thirteenth year in a row, Texas led the United States in export revenues. Texas exports for 2008 totaled $192.2 billion. In 2002, the Port of Houston was 6th among the top sea ports in the world in terms of total cargo volume;

Wealthiest places in Texas

Main page: Texas locations by per capita income

1. Southlake, Texas town, Texas $176,427
2. Barton Creek CDP, Texas $110,504
3. Westover Hills town, Texas $98,573
4. Highland Park town, Texas $97,008
5. Hunters Creek Village city, Texas $88,821
6. Bunker Hill Village city, Texas $86,434
7. Hill Country Village city, Texas $77,374
8. Mustang town, Texas $75,692
9. West University Place city, Texas $69,674
10. Hilshire Village city, Texas $66,620
11. Olmos Park city, Texas $65,697
12. University Park city, Texas $63,414
13. The Hills village, Texas $61,363
14. Southside Place city, Texas $57,021
15. West Lake Hills city, Texas $55,651
16. Onion Creek CDP, Texas $54,758
17. Tiki Island village, Texas $54,611
18. Parker city, Texas $54,099
19. Lakeshore Gardens-Hidden Acres CDP, Texas $52,512
20. Rollingwood city, Texas $52,280
21. Hedwig Village city, Texas $52,153
22. Lost Creek CDP, Texas $52,147
23. Heath city, Texas $51,049
24. Colleyville city, Texas $50,418
25. Shavano Park city, Texas $47,705
26. Sugar Land, Texas city, Texas $47,597
27. Bellaire city, Texas $46,674
28. Lakeway city, Texas $45,765
29. Ransom Canyon town, Texas $45,675
30. Alamo Heights city, Texas $45,640

Images for kids

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  Offloading freshly harvested cotton into a module builder in Texas; previously built modules can be seen in the background

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  Headquarters of American Airlines and AMR Corporation in Fort Worth

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  Hewlett-Packard United States offices near Houston, previously the Compaq headquarters

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  An oil well.

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  The San Antonio River Walk