Texas Economics Showdown 2

Texas wins a close round 2

In this short series of articles, we compare the economic performance of four states, Texas, Florida, New York, and California, over the last five years. In the end, we will attempt to declare an overall winner. While the metrics are quantitative, there is a qualitative and selective component to the choice of metrics and relative rankings. In round 1, unemployment, Florida was the clear winner.

Round 2: Business Applications

The latest data from mid-June 2024 shows that Texas has emerged as the leader in business growth, surpassing Florida and California. Texas is currently experiencing a 56% increase in new business establishments compared to pre-pandemic levels. In 2024, Texas is projected to add over 539,000 new businesses, surpassing the impressive 499,000 added in 2023. Following closely, Florida is on track to match its 2023 numbers with a 55% increase over 2019 figures. While California and New York are also ahead of their pre-pandemic pace, they are not expected to achieve the same level of growth as 2023.

It is evident across all the states that an unexpected outcome of the pandemic was an unprecedented wave of entrepreneurship. Desperate times can spark innovation and change in people that can have positive impacts.

Up Next Round 3: Inflation

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Footnote:

1. FRED Economic Data.