Texas is America’s future?

A libertarian economist argues Texas is a bright spot for America’s future:

Since 2000, 1 million more people have moved to Texas from other states than have left.

As an economist and a libertarian, I have become convinced that whether they know it or not, these migrants are being pushed (and pulled) by the major economic forces that are reshaping the American economy as a whole: the hollowing out of the middle class, the increased costs of living in the U.S.’s established population centers and the resulting search by many Americans for a radically cheaper way to live and do business.

To a lot of Americans, Texas feels like the future. And I would argue that more than any other state, Texas looks like the future as well — offering us a glimpse of what’s to come for the country at large in the decades ahead. America is experiencing ever greater economic inequality and the thinning of its middle class; Texas is already one of our most unequal states. America’s safety net is fraying under the weight of ballooning Social Security and Medicare costs; Texas’ safety net was built frayed. Americans are seeking out a cheaper cost of living and a less regulated climate in which to do business; Texas has that in spades. And did we mention there’s no state income tax?

There’s a bumper sticker sometimes seen around the state that proclaims, I WASN’T BORN IN TEXAS, BUT I GOT HERE AS FAST AS I COULD. As the U.S. heads toward Texas, literally and metaphorically, it’s worth understanding why we’re headed there — both to see the pitfalls ahead and to catch a glimpse of the opportunities that await us if we make the journey in an intelligent fashion.

Joel Kotkin would likely agree. A few thoughts after reading the full story:

1. There are several examples of people moving to Texas from California or the Northeast and finding that they really like Texas. But, the examples tend to emphasize Austin, a city known for plenty of cultural amenities. With its culture, UT-Austin campus, and tech companies, Austin looks like a cool place for the creative class. What about the other major areas in Texas? Why not stories about moving to Houston and Dallas, bigger cities and metropolitan areas with their own industries (oil, etc.)? How representative of Texas is Austin?

2. There is little discussion in the story about Latino residents. The primary focus in on Americans who have moved to Texas from other states but what about the influx of immigrants from Mexico? How are they doing? Are there some differences in their experiences as a whole versus those who are held up as successes in the article?

3. This is another article in a long line of opinions about which American state best represents the country or provides a glimpse into the future. What about California, a more progressive melting pot? What about the Washington D.C. metropolitan area, home to a number of the wealthiest counties in the United States? How about Illinois, held up in a more negative light in recent years for pension woes, too many governments/taxing bodies, bullish politicians, foreclosures, and violent crime? Perhaps we should look to Florida, specifically at the diversity in the Miami area or the aging population throughout the state? I realize people are interested in spotting trends but it is hard to select ideal types from 50 states and hundreds of big cities.

4. The story plays out Texas’ connections to the American pioneer and frontier story. This works but there is also a different culture and set of social norms in Texas. Even if business is thriving and people are moving in, does this necessarily mean many Americans would want to act or live like Texans? Is it all simply about a decent job and affordable housing? Yes, everyone may be American but outsiders and Texans themselves will tell you that the state is a land onto itself.

Inequality in American schools: students in certain states compare well with international leaders, those in other states do not

Where American students go to school matters as those in certain states score comparably to international leaders while students living in other states don’t do as well:

The average TIMSS score is a 500, and the test uses four benchmarks—low, intermediate, high, and advanced—to describe student scores. In math, two-thirds of U.S. states scored above the TIMSS average…

Massachusetts was the highest-scoring state in math, coming in behind four educational systems—Republic of Korea, Singapore, Chinese Taipei, and Hong Kong—and outranking 42 education systems. The lowest-ranking state, Alabama, outperformed only 19 educational systems…

In science, 47 states scored above the TIMMS average…

Massachusetts and Vermont outperformed 43 educational systems, while the District of Columbia ranked above only 14 educational systems. Singapore was the only education system to outrank all U.S. states.

This isn’t a new argument. The documentary Waiting for Superman raises a similar question: do we want children’s education to rest primarily on where they live, a factor over which they have little control? A Time story on education in Finland a few years ago suggested they had a different approach: raise rest scores and education overall by helping the students at the bottom. The United States and some other countries use the opposite approach where they provide resources to the best students to help them achieve even more. Both approaches can lead to higher average test scores but they would lead to different levels of variation in scores. In other words, how much of a gap between the higher and lower scorers is desirable for a society? Of course, this could go far more local than the state level. For example, some public schools in Chicago are among the best in the states while others in the city are among those that struggle the most.

This does reinforce an idea from urban sociology: where people do and can live makes a big difference in their life outcomes. Live in an area with generally more wealthy people and the outcomes are likely to be better.

Was Jane Austen the first sociologist?

An English professor argues author Jane Austen made observations similar to those of sociologists:

In his lecture “Jane Austen, Sociologist,” Wednesday night James Thompson argued that Jane Austen is the first sociologist because the focus is on human interaction and conversation in her novels.

“As a careful observer and recorder of association of small group interaction and the minutia of conversation, I am going to argue that Austen is less a moralist than the first sociologist,” Thompson, a professor of English at the University of North Carolina at Chapel Hill, said…

He said Austen’s work [Pride and Prejudice] had similar observations as Erving Goffman, a 20th century sociologist. Both Austen and Goffman emphasize the importance of first impressions. Thompson said Austen and Goffman both see a first impression as “a crucial test case of social form.” He explained that a first impression is a measure of how well the participants of a conversation understand the “rules” of social interaction.

“Jane Austen and Erving Goffman are simply the most acute observers and analysts of the minutia of conversation so far,” Thompson said.

Interesting to note that this argument comes from an English professor; how many sociologists would agree? I suspect sociologists might argue sociologists aren’t just people who can make astute observations about social life. Rather, sociologists have a particular approach to society that involves theories and a method to collecting and analyzing data. For example, while Austen and Goffman both looked at interactions, Goffman aimed to explain why humans act this way: to make a good first impression and save face.

I’ve wondered why there isn’t more formal overlap between sociologists and those in the field of English. The topics of study are study can be similar though the focus in English is often on the text while sociologists have a wider range of data sources. Sociologists of literature are rare even though texts have had a large influence on American society.

Sociologists looking at the “seamy underside” of cities

A number of media reviews of sociologist Sudhir Venkatesh’s latest book highlight his look at the “seamy underside” of New York City:

A finishing school for young minority hookers. A Harlem drug dealer determined to crack the rich white downtown market. A socialite turned madam. A tortured academic struggling to navigate vicious subcultures.

All in all, this might have made a pretty good novel. Instead it’s “Floating City,” the latest nonfiction look at the urban underbelly by self-described “rogue sociologist” Sudhir Venkatesh…

Much of what the author finds out about the seamy underside of urban life has already been discovered by predecessors as various as Emile Zola, Nathan Heard and Tom Wolfe (to say nothing of the producers of “The Wire”).

This reminded me that this is not a new approach for urban sociologists. The classic 1920s text The City from Robert Park and others in the Chicago School looks at some of the seamier sides of Chicago including boarding houses and slums. Numerous other sociologists have explored similar topics including looks at bars, drug use, and criminal activity in cities. This sort of approach works to challenge more cultured American society who can’t understand what motivates urban dwellers involved in these activities, satisfy curiosity.

While this research might help expose the plight of some urban residents, it might have another effect: limit the number of sociologists looking at elites. I remember hearing sociologist Michael Lindsay speak about this a few years ago after carrying out his research with elites. Who is closely studying elites who have both influence and resources?

Oregon to adopt driving tax by miles driven on volunteer basis in 2015

Oregon is moving ahead with plans to institute a miles driven tax rather than a gasoline tax:

The program, springing out of a recently signed bill, is expected to launch in 2015 on a volunteer basis. But it’s charting relatively new territory, and other states aching for additional tax revenue are sure to be watching closely to see whether to imitate the model…

Oregon is purportedly considering several tracking methods for the pilot project’s 5,000 volunteers ahead of the 2015 start date – essentially allowing them to install mileage meters connected their vehicles’ odometers or GPS systems that could better track non-taxable miles on private and out-of-state roads…

A state spokeswoman said Monday that the project is still in the development stages with officials focused on public awareness, not registration.

Still, she acknowledge residents with electric cars, who pay no gas taxes, “won’t be running to sign up.”

As the article suggests, this is likely to be unpopular for a number of reasons including cost and privacy. However, I haven’t seen any other proposals for how to continue to maintain roads if cars continue to be more fuel efficient. Another option would be to raise the gas tax but no one would like that either. The roads have to be paid for somehow.

Perhaps the key would be to show people that they would be paying a similar amount through the gas tax or the miles driven tax. If the numbers are comparable for many people, it is just replacing one tax with another rather than adding on a new tax. But, the two taxes are based on two different things.

Illinois revenue issue: “sin taxes” can’t keep pace

Even as legislators raise “sin taxes,” it is difficult for the state to bring in as much revenue from such taxes:

While state lawmakers continue to increase taxes on liquor, cigarettes and gambling, revenues from the so-called “sin taxes” aren’t keeping pace. At $1.95 billion, 2012 revenue from those taxes was almost on par with that of 2003, even though most tax rates increased significantly, according to a Daily Herald analysis of Illinois Department of Revenue financial reports…

Since tobacco taxes were raised in 2002, revenues steadily have declined to pre-hike levels as cigarette purchases dropped in Illinois. Legislators last year doubled tobacco taxes, but revenue did not keep up. After getting $609 million in tobacco taxes in the previous fiscal year, the state generated $856.5 million from tobacco taxes in the fiscal year that wrapped up a few months ago, according to the state legislature’s Commission on Government Forecasting and Accountability…

While taxes on things like cigarettes and liquor are relatively easy to sell to many taxpayers, critics say a failure to maintain these revenue levels ultimately results in higher taxes for everyone. It’s no surprise to Illinois Policy Institute Executive Vice President Kristina Rasmussen that sales and income tax rates have also increased in recent years…

The state’s sales and income tax projections are also eroded by buyers going elsewhere for alcohol, cigarettes and similar products. Rasmussen said legislators are taking a shortsighted approach to revenue enhancements instead of solving long-term debt problems.

It is more popular politically to go after sin taxes than to look at larger spending or taxing issues.

But, what counts as a “sin” is also interesting to note – it is quite a social construction. Cigarettes are seen as a huge threat to public health but are not illegal. Alcohol was once banned on a national level and there were decades of temperance movements but it too is legal and brings in a lot of revenue beyond sin taxes – think what restaurants generate. Marijuana is a growing sin tax alternative as some places look to cut costs: instead of jailing users and sellers, why not just ticket them or tax them, making money off of behavior that is still seen as deviant. Thus, it isn’t surprising as more of these traditional “sins” fail to generate sufficient revenue that new sins are identified, from red-light cameras to speed cameras to soft drinks to junk food and beyond.

Study: self-driving cars would be expensive but would save lots of lives, money down the road

A new study suggests self-driving cars would have a lot of benefits:

If 90 percent of vehicles were self-driving, as many as 21,700 lives per year could be saved, and economic and other benefits could reach a staggering $447 billion, said the study, a copy of which was provided to The Associated Press…

For example, the passenger compartment may be transformed as former drivers safely work on laptops, eat meals, read books, watch movies and call friends. And cars that can be programmed to pick up people, drive them to their destination and then park by themselves may change the lives of the elderly and disabled by providing critical mobility.

Once a critical mass of self-driving cars is on the road, they can start “platooning” — driving closely together but keeping a steady distance between each other without the fuel-burning, time-wasting, stop-and-go typical of traffic congestion. That could smooth traffic flows, reduce commute times and increase highway capacity.

Government research indicates driver error is likely the main reason behind over 90 percent of all crashes. Over 40 percent of fatal traffic crashes involve alcohol, distraction, drugs or fatigue. But self-driven vehicles wouldn’t fall prey to such human failings, suggesting the potential for at least a 40 percent reduction in fatal crashes, the study said.

Who doesn’t like safety, saving money, and reducing the stress of driving? If more companies produce such cars and they become legal as well as widely accepted, it will be interesting to see how quickly prices might drop.

I wonder at the efficacy of self-driving cars if they only constitute a small number of cars. While they would still allow drivers to do other things in the car, they wouldn’t quite be as safe until a majority of cars are self-driving. It seems like the benefits rise at a steep curve: a few self-driving cars won’t help much but having 90% self-driving cars would be transformational.

I also am curious to know whether there would be people who would oppose self-driving cars because they can perpetuate car culture in the United States. If peak oil is not near and self-driving cars make driving safer and easier, might Americans have cars for centuries?

Updated data on interracial marriages in the US

Pew published last year a report on interracial marriage in America and here are some of the findings:

The Pew Research Center study released last year, using 2010 data, is the most recent major look at interracial relationships. It found that among new marriages in 2010, Asians were the group most likely to intermarry, at 27.7 percent. Hispanics were next at 25.7 percent, then blacks at 17.1 percent and whites at 9.4 percent. For the Pew study, marriages between two people who are mixed-race weren’t considered interracial…

The prevalence of interracial relationships varies widely by region. Census data show that in 2008-2010, the Midwest had the fewest mixed-race newlyweds with 11 percent. The Northeast region was next with 13 percent and the South had 14 percent, boosted by the high numbers of blacks in states like Virginia and North Carolina who marry outside their race.

At 22 percent, the West had the most interracial newlyweds, with the majority involving an Asian, Hispanic or Native American. Hawaii was by far the state with the most mixed-race couples, followed by Oklahoma, Nevada, New Mexico, Alaska and California. Illinois ranked 29th among the states.

Interesting findings. This is a shift in American life – just 50 years ago this would have been quite rare. But, there are still big differences between whites and others.

Why does the Midwest have the lowest percentage of interracial marriages? Two quick ideas. One, the region might be the most white as the Census Midwest region stretches from Ohio to the northern Great Plains. Second, large cities in the Midwest tend to score quite high on residential segregation (as does the Northeast), suggesting people of different races don’t live in the same places. If marriage and dating is partly about who one is exposed to, living in more racially homogeneous areas could limit the pool.

Gathering more support for mass transit by telling drivers it helps keep the highways clear

The growing popularity of mass transit in Utah may be explained by an interesting pitch to drivers:

Oddly enough, one of UTA’s most effective strategies for uniting people was targeting those who don’t use public transit. The agency and its advocates pointed out that TRAX ridership saves 29,000 trips — or two full freeway lanes — in the Interstate-15 corridor every day. Road-reliant businesses like UPS ran ads explaining that FrontLines would help residents get their packages quicker by reducing traffic.

As the article notes, this is just part of the picture in how expensive new mass transit can be built. The message explained above is intriguing: drivers, you may not use mass transit, but you should support it for others so that it makes your drive easier. What is the tipping point here where you need enough of those drivers to stop driving and use mass transit versus some drivers wanting to keep driving because there is less traffic? I wonder if this could also verge into classism: those who can afford to drive and help pay for mass transit will continue to do so while those who would economically benefit from not having to drive as much will do so.

Big builders making custom houses

This might just be a trend: the Wall Street Journal reports on big builders offering custom big homes:

A number of big home builders are now getting into the custom-home game — an area that was once almost entirely the province of boutique builders. Companies such as John Laing Homes, Toll Brothers Inc. and K. Hovnanian Homes are all venturing into a field that takes more time, patience and hand-holding than production building.

The reason is simple: Custom-home building is more profitable for builders. And — in this tough market — it also carries less risk: Builders avoid the carrying costs of land, taxes and other monthly expenses that can come with speculative building. Because custom building caters to the upper end of the market, it’s doing better than production building right now, says Steve Melman, an economist with the National Association of Home Builders. Although home building of all types is stagnating, he says that the custom share of the market tends to go up during down times, while production building peaks during boom times. In 2007, the custom share of the market was 24%. In 2005, during the peak of the boom, the custom share was 19%.

The big attraction for home buyers is the price: Consumers usually pay less when they buy a home from a big builder than they do from a small one. Big builders benefit from economies of scale in buying materials and have developed efficient systems for negotiating with and scheduling contractors. So even though they charge more per square foot for a custom home than they do for a mass-produced one, big builders can usually undercut the price of their smaller competitors.

Custom homes come in two forms, though both are built on an owner’s lot rather than a builder’s. True custom homes are built to an owner’s specifications; so-called “semicustom” homes evolve from a builder’s predrawn plans. Though big builders have long built “semi-custom” homes on their own lots, most only recently began to seek out customers who want to build on lots they already own.

Three thoughts:

1. While these may be custom homes, can’t these run into the issue of still being viewed as mass-produced? Where is the line between economies of scale and something truly custom?

2. Money is a big factor here: the homeowner can get a cheaper custom house and the builder can make more money with less risk. What is there to lose (except perhaps #1)?

3. I bet architects would want in on this. Architects don’t design most new houses in the United States, but they might argue builders even at the custom level still can’t quite create interesting homes (meaning truly custom) or ones that are truly built around the interests of the homeowners.