of oil on Spindletop, Texas began a run on one of the most flourishing economies in the union. Oil and gas would become the big industry in Texas, and governmental regulations on oil would soon be the only real source of governmental influence to be had in a politically week state. With large Tax breaks at the federal level, including the percentage of depletion allowance and the provision for expensing of allowable drilling cost, helped to stimulate the industry’s growth.Shortly after WWI Texas like Arizona would receive several defense contracts as well as, military installments which would lead to the beginning of a relocation of big business to Texas. Eventually with the Cold War and the space race, the emergence of aerospace and electronic firms would lead to even bigger economic growth. The competitive nature of Americans and the federal government would begin pushing the space race to such highs that companies like Texas Instrument and many others would emerge. Even more so, when economic crisis hit the country, and gas prices skyrocketed, Texas cam out smelling like a rose due to the overwhelming resources at it’s disposal. Inparticularlly in 1973 with the Arab oil Embargo, Texas’s oil supply helped to bring down oil prices and supply oil for much of the Untied States. Texas seeming with its hands off governmental approach had no worries. However, even with no state income tax, and virtually no other real major taxes on it’s citizens, Texas was able to support it’s public programs through taxes on oil and other governmental defense contracts. But a week government would lead to major impediments to Texas’s broad based public programs including education. Education was still low, at one time as low as 31st in the country. With fewer quality schools and more people coming to such a hot bed of economic prosperity, educational statistics would continue to drop until courts forced the spending o...
