Thursday, October 27, 2016

Texas, once a star, becomes a drag on the U.S. economy

The article, written by written by Erin Ailworth and Ben Leubsdorf (on the wall street journal website) says that after two years of slumping oil prices, the state is becoming a sore spot for the national economy. When Texas had an economic boom, the boom itself added one out of every seven American jobs between 2010 and 2014. By the end of 2014 the state lost more than 91,000 jobs in oil and gas extraction as well as mining-support activities.
Even though the economy in Texas grew 3.9% a year from 2010 to 2015, oil prices have gone lower. They used to be over $100, but now they are around $50. There are reports of a lot of the unemployed workers going to cities like Atlanta for other opportunities in working industries. I believe that this is unfortunate but at the same time with prices getting lower on oil, there might not be enough money to pay all of the employees, and I think that's just because of how low oil's supply is going to be in the future.

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