Describe the major changes and developments in the Texas economy over time. How has Texas’s economy exemplified the theory of creative destruction? In what ways has NAFTA affected the political economy of the state?
The economy of Texas is the second largest in the United States. It has a gross state product of $1.803 trillion (2018), the second largest in the U.S. In 2017, Texas grossed more than $264.5 billion a year in exports—more than the exports of California ($172 billion) and New York ($77.9 billion) combined. Texas has a diverse economy with major industries, such as petroleum and natural gas, farming, steel, banking, and tourism.