Texas Economy and Land Size
Texas is ranked second in terms of land size after California amongst other states in the US. The state commands a State Gross Product up to a tune of 1.645 trillion dollars. The state offers accommodation to six companies that are found in Fortune 500's Top 50 Companies. Texas' 2017 gross exports amounted to more than 264.5 billion dollars per annum which beat both New York's and California's 77.9 billion and 172 billion dollars combined respectively. Texas could be ranked in the tenth position in the world rating just behind Canada and South Korea when considered as a sovereign state. The household income cumulated to 48,259 dollars in 2010 which scooped the twenty-fifth position in the US (BUENGER 2012). The 2012 calculated state debt was found to be 121.7 billion dollars which could boil down to 7400 dollars per capita. The population of Texas is the second largest behind California's. Cattle, bison, timber, cotton, and oil industries are some of the business activities that helped sculpture the Texan economy before the WWII (BUENGER 2012). The paper will attempt to trace the Texan Economic History from the European arrival and up to the current times.
Early Cattle Rearing and Production
Cattle rearing and production industry flourished enormously before the colonial times. Hide and fur demand was high since various industries required such commodities as raw materials for the production of other finished products that were required in other markets. Such raw materials were mainly obtained from the cattle, goats, and sheep. The prevailing climate facilitated the proliferation of the occupation since it favored the growth of pasture which served as food to the livestock. The beef industry was later pioneered by the Texan Entrepreneurs due to the steady rise in demand for flesh by the available population (McFarlane 2017). The fall of the 1870s and early 1880s saw the epitome of financial success in the Cattle production industry in Texas due to the growing demand for the by-products from cattle in the local and global markets.
Cotton Growing in Texas
Cotton growing was ubiquitous in Texas even from the times Spaniards occupied the place and the activity bloomed throughout the 19th Century. The cotton boom was reflected in the great financial proceeds and the skyrocketing demand of the products in the Texas scenario. Texas became the chief cotton producer in the US by the dawn of the 20th Century (McFarlane 2017). The government regulation of cotton production came into effect in the 1920s and competition from the foreign markets counteracted the activities back home in Texas.
Timber Production in Texas
Timber production contributed significantly to the Texas economy due to the various products that were derived from wood. The dense Texas forests served as rich sources of the raw material as a result of the sufficient rain experienced in the place and the favorable soil that provide the adequate substrate for forest growth. The vast and expansive tracts of land dominated with forests harbored innumerable plant and wildlife species that were necessary for the eco-balance which, in turn, fostered a friendly environment for growth. Timber was sold so that it could be used in the building of ships and other structures such as houses. The use of wood in construction was predominantly employed in the ancient times and the ship-building industries flourished tremendously in the olden days ("The (Short) Monetary History of the Republic of Texas" 2013). The ships were required in the exploration process, the sphere of influence era, or just expeditions especially for the royal families as a way of prestige. The woodlands provided economic opportunities to the early arrivals in Texas. The dense woodlands were situated to East Texas. The Big Thicket which is which located to the North of Beaumont and Houston formed part of the areas that were heavily occupied with dense forests. The valley of the Rio Grande located in South of Texas had numerous large palm trees during the first arrival of the Spanish but the encroachment on the land result in the complete destruction of the palm forest. The Gladys Oil, Gas, and Manufacturing Company discovered the presence of oil in the Spindle-top Hill based in Beaumont in 1901. Texas was widely touted as the largest oil producer in the United States by the 1940s due to massive exploitation of the oil reserves (Limón 2017).
Impact of World War II
WWII culminated in the rapid increase in demand of petroleum and other petroleum products which were required in the running of machines and weaponry at the time. Texas was strategically positioned to chip in and exploit the golden opportunity of providing the service. Texas cashed out heavily on the deal sealed between Texas and various customers since there was abundant oil for domestic consumption and export. The economy was heavily diversified by the end of WWII. Currently, Texas' economy depends heavily on the Information Technology, defense industry, Aerospace industry, Oil and Natural Gas industry, Fuel processing, Biomedical Research, Agriculture, Electric power, and Manufacturing industry (Limón 2017).
Exports
Texas State led in revenue production in the US whereby 2014 was the thirteenth year in a row due to the diversified state of the economy prevailing in the state. The cumulative Texas revenue in 2008 amounted to 192.2 billion dollars. Port Houston was rated the sixth amongst the leading seaports in the globe based in the total volume of cargo. Dallas, Fort Worth International Airport was globally recognized as the "best" airport for cargoes in the world by the Air Cargo World organization. Port Houston Ship Channel is classified as the largest within the US and the sixth in size in the globe according to the observations posited during a particular internal commerce convention ("The (Short) Monetary History of the Republic of Texas" 2013).
Taxes
The Texas local and state tax burdens are considered the lowest amongst the states in the US. Texas is the seventh lowest in the national grid. The state per capita taxes and local taxes cost $3580 or an equivalent of 8.7% of the income of the residents. The state consists one of the exclusive seven states without the state income tax. The sales tax for the state which is 6.25 percent is above the national medium whereby the local entities had the leeway to add up to 2% hence averaging up to 8.25 percent. Texas possesses a "back to school" sales tax that comes during the holiday per annum, especially around August's first weekend. The kind of tax is based on footwear and clothing whose ceiling percentage is 100. Texas is the eighth in the business tax climate rating in the US but the taxes on the property are acquired at a local level in an exclusive manner based on rates slightly above the national average. Texas is dubbed a "tax donor state" since the Texans recover approximately 0.94 percent per dollar in each federal income taxes that came into effect in 2005. All businesses except cases of sole proprietors and partnerships are exposed to a gross marginal tax ("The (Short) Monetary History of the Republic of Texas" 2013). The State provides the final determination of the items subject to sales tax and every stakeholder is mandated to comply.
Conclusion
Texas is a state that is well endowed with various natural resources from the annals of history. The favorable weather provides flush pasture that acted as food to the cattle. The cattle were sold off to cater for the local and national economy. The discovery of oil came in handy during the WWII when the resources were direly needed in the various operations. The stable and healthy business climate has attracted numerous investors who have headquartered their business offices in the Texas and Houston areas due to convenience and provisions available. Texas has become a throbbing business Metropolis and epicenter of the global socioeconomic revolution.
Works Cited
"The (Short) Monetary History of the Republic Of Texas". Vol 121, no. 2, 2013, p. Back Cover-Back Cover. University Of Chicago Press, doi: 10.1086/671112. Accessed 10 Dec 2018.
BUENGER, WALTER. "Texas and the History Of American Foreign Policy". Diplomatic History, vol 36, no. 3, 2012, pp. 495-498. Oxford University Press (OUP), doi:10.1111/j.1467-7709.2012.01038.x. Accessed 10 Dec 2018.
Limón, José E. "Texas Identities: Moving Beyond Myth, Memory, and Fallacy in Texas History Ed. By Light Townsend Cummins and Mary L. Scheer". Journal of Southern History, vol 83, no. 3, 2017, pp. 673-675. Johns Hopkins University Press, doi:10.1353/soh.2017.0177. Accessed 10 Dec 2018.
McFarlane, Wallace Scot. "Oil on the Farm: The East Texas Oil Boom and the Origins of an Energy Economy". Journal of Southern History, vol 83, no. 4, 2017, pp. 853-888. Johns Hopkins University Press, doi:10.1353/soh.2017.0244. Accessed 10 Dec 2018.
