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Podcast: Erica Grieder on the Texas model

Summary:
[embedded content]Alphachat is available on Acast, iTunes and Stitcher.Our guest for this episode was Erica Grieder, a journalist and author of Big, Hot, Cheap, and Right: What America Can Learn from the Strange Genius of Texas.The state of Texas is often stereotyped and thus easily misunderstood. But its economic model — low taxes, light regulation, not much spending on public services — appears to have worked quite well for it. The model allows for meaningful exceptions such as an industrial policy that privileges the interests of businesses and entrepreneurs, and it includes a willingness to learn from earlier mistakes. One example was the implementation of tight restrictions on mortgage lending in response to an earlier lending bust, allowing Texas to escape some of the worst

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Alphachat is available on Acast, iTunes and Stitcher.

Our guest for this episode was Erica Grieder, a journalist and author of Big, Hot, Cheap, and Right: What America Can Learn from the Strange Genius of Texas.

The state of Texas is often stereotyped and thus easily misunderstood. But its economic model — low taxes, light regulation, not much spending on public services — appears to have worked quite well for it. The model allows for meaningful exceptions such as an industrial policy that privileges the interests of businesses and entrepreneurs, and it includes a willingness to learn from earlier mistakes. One example was the implementation of tight restrictions on mortgage lending in response to an earlier lending bust, allowing Texas to escape some of the worst consequences of the recent housing crisis.

Also important is that the suite of policies embraced by Texas has been contextually appropriate to the state’s particular history, its cultural traditions, and its endowment of natural resources. That’s the takeaway of Erica’s book for other states — not that they should precisely replicate the Texas model, but that they should be un-ideological and pragmatic in developing their own models.

We discuss these concepts before closing with the Texan reaction to Donald Trump’s protectionist leanings on trade and immigration. Hope you enjoy the chat, and a few more links to Erica’s writings are here:

Trumpeting Trade

The potential for a purple Texas

Nafta was a bipartisan effort

A time for soapboxing

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Cardiff Garcia
Cardiff writes mostly about US macroeconomic issues, with daily excursions into other topics about which he claim no expertise. Before Alphaville, Cardiff spent a little more than two years as a reporter at Dow Jones Financial News covering investment banking, asset management, and private equity. Along the way he has written freelance pieces on a variety of other topics from behavioural psychology to Muay Thai, the latter also being a personal interest that involves frequently getting kicked in the shins (and torso, and head).

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