Back when I was doing regular Texas vs. California updates, this is the sort of video I would feature. It covers why Texas is doing so much better than Europe, though the framing misses a few things I’ve tried to highlight below.
Caveat: I don’t know who “The Economic Matrix” is, but what they’re saying is generally right, but a bit incomplete.
“This is Texas. To most of the world, it’s just one of 50 American states. But if you pulled it off the US map and dropped it into the global rankings as its own nation, it would sit eighth in the world, sandwiched directly between France and Italy, with a staggering GDP of $2.77 trillion. But that’s just the start. In 2025, the Texas economy was bigger than the equivalent of the Netherlands, Belgium, Denmark, and Austria combined.”
“Texas and Europe are separated by more than an ocean. They’re separated by two completely different ideas of how a state should operate. And right now, one of those ideas is winning by a distance that gets harder to close every year. In 2024, the Texas economy grew by nearly 4%. The entire European Union managed 1%, and the gap is only getting wider.”
“The EU spent most of the last 15 years in crisis mode. A sovereign debt collapse left Greece, Spain, and Portugal on the edge of ruin.” I covered the European Debt Crisis (especially among the PIIGS (Portugal, Italy, Ireland, Greece, Spain)) as it was happening, and the thing to remember is that it was (and is) a deficit spending crisis. Like the federal government, European governments insist on spending more than they take in. Real austerity, i.e. cutting outlays until they match receipts, hasn’t failed, it’s been declared difficult and left untried.
“Years of near zero growth followed. The in 2022, Russia cut off the gas and sent inflation across the Euro zone spiking to 9.2%.” Here the video also avoids noting that another big inflation driver was the effects of the Flu Manchu lockdown across most EU economies.
“Through all of that, the Texas economy just kept climbing. The productivity gap tells the same story. Between late 2019 and mid 2024, labor productivity per hour in the Euro zone rose by 0.9%. In the US, it rose by 6.7%. Texas led that charge.”
“Look at the Permian Basin. Oil production nearly tripled in a decade while the rig count was cut almost in half because horizontal drilling and AI-guided extraction meant fewer rigs producing more oil. Same workforce, three times the output.” Oil industry-specific AI has very little do with the current general AI build-out bubble.
“There’s a mathematical reality that makes this trajectory almost impossible to reverse. At 1.5% annual growth, the EU takes roughly 47 years to double in size. At the 3.5% rate Texas usually averages, it takes 20. By the time the EU doubles once, Texas will have doubled twice. That gap compounds and it means every year the distance between these two economic models doesn’t just persist, it accelerates.”
“Mario Draghi, the former head of the European Central Bank, released a landmark report warning that without serious reform, the EU is heading toward what he called a slow agony. Leaders held a retreat to discuss it. Then they went back to their committees.” Future pain is abstract, while the electoral pain of trying to reform things is far more immediate.
“Since 2020, more than 200 companies have moved their headquarters to Texas. Tesla relocated to Austin in 2021. Chevron, one of the largest energy companies on Earth, announced its move to Houston in 2024. Charles Schwab, CBRE, SpaceX. More than half of these relocations came from California alone.”
“These are not satellite offices or mailbox moves. The reason they gave was simple. The regulatory environment in California made expansion too slow and too expensive. Texas made it fast, cheap, and permanent.”
“Spotify was founded in Stockholm, but listed on the New York Stock Exchange. Skype was built in Estonia and Luxembourg, then bought by Microsoft and absorbed into Redmond. ARM was designed in Cambridge, England, then acquired by a Japanese conglomerate and listed in New York. Europe keeps building the talent. America keeps cashing the check.”
“Beneath the growth stats and the corporate migrations, there’s one factor that explains this gap better than anything else: Energy. Texas produces more energy than almost any country on Earth. Not other American states, actual nations. Between 2007 and 2023, while the rest of the United States saw energy consumption drop by about 5%, Texas went in the other direction. Energy use in the state climbed by 21% and the industrial sector alone saw a 28% jump in demand. This was not a state focused on conservation or cutting back. Texas was building oil rigs, refineries, chemical plants, and massive wind installations, all at the same time.” Those wind farm installations were the result of subsidies, and they’re not really building new ones anymore.
“The reason Texas could pull this off comes down to one decision made decades ago. Texas built its own power grid, specifically to escape the slow motion gears of federal regulation. The result, solar capacity that grew 32% in just 2024, wind generation that leads every other American state, and a massive natural gas fleet running underneath it all to keep the lights on when the sun goes down, cheap, abundant, predictable, and fast to build.” Again, the solar build-out was aided by subsidies.
“For decades, the European energy models rested on one assumption. Buy cheap gas from Russia, build out renewables slowly, and keep industrial costs manageable. When Russia invaded Ukraine in 2022, that assumption collapsed overnight. Wholesale energy prices went vertical. Industrial electricity costs in Germany suddenly hit three to four times what businesses in Texas were paying for the exact same power.”
“Look at what happened to BASF, the largest chemical company in the world. For over 150 years, their home was Ludwigshafen, Germany, a sprawling industrial complex on the Rhine that employed tens of thousands. After 2022, they announced billions in cuts to that site. Plants shuttered, thousands of jobs gone. But BASF didn’t disappear. At the exact same time, they were breaking ground on new facilities in Freeport, Texas. Same company, same products, two completely different decisions driven entirely by the price of electricity.” Probably not just electricity. Union work rules in Germany are considerably less flexible than those in right-to-work Texas.
“France tried to escape this trap by leaning into nuclear power, which once covered 75% of French electricity needs. But that infrastructure is aging. New reactor projects like Flamenville have run tens of billions over budget and more than a decade behind schedule, and the political will to build more has been stuck in debate for a generation. The old Russian gas model is dead. The nuclear renaissance has not arrived. And permitting a single wind farm in the EU can take 7 to 10 years.”
“In Texas, the same process often takes a few months. Energy prices act like a hidden tax on everything from manufacturing steel to running a server farm to heating a bakery. European businesses pay that tax every single day. And Europe does not have the gas, does not have the grid independence, and does not have the permitting speed to change that.” Actually, Europe does have oil and gas reserves it refuses to develop.
“Cheap energy is a huge piece of the puzzle. But the real accelerant for the Texas economy has been something even harder for Europe to copy. And it starts with one number. The average top personal income tax rate across 35 European countries is 38.5%. In Denmark, that number hits a staggering 60.5%. In Germany, France, and Italy, high earners face rates between 45 and 50%.”
“In Texas, the state income tax rate is zero. It’s always been zero, and the Texas Constitution actually makes it illegal for the state to introduce one without a direct vote from the public. This is not a temporary policy that a new government can reverse after the next election. It’s locked into the foundation of the state.”
“Texas still has high property taxes, so the total burden on a normal resident is not as dramatic as that 0% headline suggests. But for the people these economies are competing over, the math is brutal. A senior software engineer in Munich earns roughly €75,000 and takes home about $45,000 after income tax and social contributions. The same engineer in Austin earns $140,000 and takes home over $105,000. same skills, same screen, more than double the money in their pocket at the end of the year. Between 2020 and 2024, Texas startups pulled in over $46 billion in venture capital. In Q1 2025 alone, Texas tech companies raised nearly $3 billion, the biggest single quarter the state had seen in over 2 years, with massive deals in cyber security, defense tech, and biotech.”
“Compare that to the other side of the Atlantic. The entire European Union raised about $17.5 billion for AI funding in all of 2025. The US raised nearly $70 billion for generative AI alone by midyear. Not total tech, not all venture capital, generative AI alone. These two regions are not competing in the same category.”
“The EU’s regulatory framework was designed to protect consumers and level the playing field. GDPR [General Data Protection Regulation], the AI Act, 27 different national compliance regimes stacked on top of each other. The intentions were sound, but the unintended result is that the compliance costs favor massive American companies like Google and Microsoft, who can absorb them easily over smaller European rivals who can’t.”
“None of this means Texas has it all figured out, because the truth is it hasn’t. The most visible problem is housing. In 2019, a median Texas family earned 62% more than they needed to buy a median home. By 2023, that cushion had collapsed to just 7%. Not 62%, 7%. Over a third of Texas households now spend more than 30% of their income on housing.” That’s a national problem, partially engendered by the Flu Manchu shutdowns, partially by restrictive local building codes. “Affordable housing” blather snipped, since this is just more unnecessary government subsidy and intervention.
“The workers who actually build the Texas economy, the Tesla line workers, the nurses, the warehouse staff, can’t afford to live in the cities their labor is building anymore. They commute in from further and further out, and the roads, the housing, and the services all fall behind.” Partially true, partially false. Austin housing prices exploded, but have come down dramatically. Dallas and San Antonio prices spiked, then plateaued. Houston prices have continued climbing, but gradually.
“When a place grows this fast, the infrastructure simply can’t keep up.” True of Austin, less true of Houston, though having to rebuild certain interchanges is making things a nightmare for certain commuters.
Discussion of energy grid problems and the 2021 ice storm snipped, since I think we’ve covered those enough here.
“The problems in Texas are the problems of a place growing too fast. The problems in Europe are the problems of a place that is barely growing at all. In that sense, Texas and Europe have something in common. Both are stuck. The difference is that Texas is gridlocked because too many people are trying to get to work. Europe is gridlocked because too many committees are still deciding whether to build the road. Right now, Texas has its sights set on overtaking France, a G7 nation. At current growth rates, that gap closes faster than most people realize. And France’s response, like the rest of Europe’s, has been to wait and see.”
“The real question isn’t whether Europe can change. It’s whether it actually wants to change badly enough to feel the pain that comes with it. Because while Brussels is still writing the rule book, the game is already over for the economies Texas has already passed. The ones still in its path just haven’t checked the scoreboard yet.”
Left out of this coverage: Texas has a constitutionally mandated balanced budget, while the overwhelming majority of European nations keep running budget deficits to keep their cradle-to-grave welfare states afloat.
Not to mention a government run by Republicans rather than unstable coalitions including the Greens…
Despite the best efforts of Democrats, both Texas and the federal government have made vast strides in securing the border the Biden Administration intentionally left wide open, with border crossing by illegal aliens at record lows. But much work remains to to be done to clean up the immigration mess Democrats made, so here are some recent immigration policy tidbits from Texas.
Gov. Greg Abbott announced a temporary pause on all H-1B visa applications for public universities and state agencies on Tuesday.
The pause is set to last until the Texas Legislature addresses the matter when it reconvenes in January 2027.
Abbott stated that the freeze “will provide time for the Texas Legislature to establish statutory guardrails for future employment practices regarding federal visa holders in state government, for the U.S. Congress to modify federal law, and for the Trump Administration to implement reforms aimed at eliminating abuse of this visa program.”
The H-1B visa program allows entities to hire ”nonimmigrant aliens as workers” in specialized occupations. It authorizes temporary employment of these individuals for employers who otherwise cannot obtain the needed skillset from the U.S. workforce.
In his letter announcing the pause, Abbott explained that “the federal H-1B visa program was created to supplement the United States’ workforce — not to replace it. Evidence suggests that bad actors have exploited this program by failing to make good-faith efforts to recruit qualified U.S. workers before seeking to use foreign labor.”
“In the most egregious schemes, employers have even fired American workers and replaced them with H-1B employees, often at lower wages.”
Before spelling out the details of the freeze, Abbott added, “State government must lead by example and ensure that employment opportunities — particularly those funded with taxpayer dollars — are filled by Texans first.”
I’m with Abbott on state agencies. I can’t conceive of any position that can’t be filled by a Texas instead of a foreign national. It’s a big state!
As for universities, I can see a few situations where hiring an H-1B might be justifiable. Say, you’re creating a center for superconducting and the third greatest superconducting physicist in the world is Japanese. (Not Chinese. No matter how smart he is, he’ll steal all your data and send it straight to Beijing.) But H-1B visa programs have been abused for so long that a temporary ban is probably a good idea until those guardrails can be put into place.
His first point in the directive is that no Texas agency controlled by a governor-appointed head or a “public institution of higher education” will, without the permission of the Texas Workforce Commission, be allowed to file any new petition to sponsor “nonimmigrant worker under the federal H-1B visa program until the end of the Texas Legislature’s 90th Regular Session on May 31, 2027.”
Abbott’s second point directs state agencies with heads appointed by the governor, along with public institutions of higher education, to, “by March 27, 2026, provide the Texas Workforce Commission with a report.”
The report mentioned will include items related to visa quantity and details about visa-holders, including but not limited to “how many new and renewal petitions the entity submitted for H-1B visas in 2025,” “The countries of origin of all H-1B visa holders the entity currently sponsors,” and “Documentation demonstrating efforts to provide qualified Texas candidates with a reasonable opportunity to apply for each position fill.”
Trust, but verify.
And here’s a video from Texas Scorecard’s Sara Gonzales on H-1B abuse:
“There should be a moratorium on legal immigration.”
“How long should it be?…However long it takes.”
“it is it is of no consequence to me how people across the world feel about [a moratorium].”
“This is supposed to be, like, super skilled, you know, postgraduate engineers, like the brightest minds, supposed to be the brightest of the brightest minds, engineering, doctors, uh the best of the best. That is what the H1-B visa is supposed to be for.”
She points people to https://guestworkervisas.com to look at who is applying for H1-B visas. In Texas, I would not have guessed that “Cognizant Technology Solutions” would be hiring submitting more H1-B applications than Tesla, Oracle, Schwab, AT&T and HPE combined. Other questions: Why did Dallas ISD file for 372 H1-B visas last year? “Middle school math teacher $62,000 a year. We only need someone from India. Nobody else can fill that spot.”
Bilingual requirements are another part of the scam.
Related to Gov. Abbott’s application pause, UT Southwestern Medical Center ranks 10th on the list, and Texas A&M, The University of Texas M.D. Anderson Cancer Center, The University of Texas at Austin, and Baylor College of Medicine all rank in the top 20.
Etc.
More good news from the Southern District of Texas, where a naturalized pedophile sex offender had their citizenship revoked.
A U.S. citizen born in Mexico and naturalized in 2010 has had his citizenship revoked after it was discovered he committed a child sexual assault prior to his naturalization and concealed it on his citizenship application.
The U.S. District Court for the Southern District of Texas in McAllen granted an order on January 22 revoking the citizenship of Carlos Noe Gallegos.
“American citizenship is a privilege that this child-abusing monster never should have been able to attain,” U.S. Attorney General Pam Bondi said in a press release about the case. “We will continue ensuring that anyone who conceals such conduct while obtaining naturalization is found out and stripped of their citizenship.”
Gallegos married a U.S. citizen in December 2001 and about four years later was granted permanent legal resident status. He applied for citizenship in 2009. In answer to a question on his citizenship application about whether he had ever committed a crime for which he had not been arrested, Gallegos answered no.
He was naturalized as a citizen in 2010.
In 2016, the State of Texas indicted Gallegos on two counts of aggravated sexual assault of a child, a crime that it alleged took place in 2007. Gallego pleaded guilty to the charges and was sentenced to six years of community supervision.
The judge revoked Gallegos’ citizenship under 8 U.S.C. § 1451(a), which allows for the revocation when the “certificate of naturalization [was] illegally procured … by concealment of a material fact or by willful misrepresentation.”
In this case, the government argued that Gallegos was ineligible for citizenship at the time he obtained it because, within five years of filing his application, he had committed a crime of moral turpitude and that crime adversely reflected on his moral character.
Naturalization is a privilege, not a right. Foreign-born sex offenders should be stripped of their naturalization and deported, no matter how hard Democrats fight to keep them in the country.
It’s going to take years to clean up the problems that Democrats imported into America, but progress is being made…
Kash Patel is following the money, and may soon release the answer to who’s funding and controlling domestic terrorists Antifa:
FBI Director Kash Patel tells Just the News that the bureau is “on the verge” of unmasking the command structure and financing for anarchist groups like Antifa that have unleashed unrest around America and has also identified potential new criminal activity related to the abuse of federal law enforcement and intelligence.
“We are looking at so many different leads on criminal activity by those who are in positions of power, and we’re not going to stop until every single one of those is fully exposed,” Patel said during a wide-ranging interview this week on the “Just the News, No Noise” television show.
When asked whether more indictments against those accused of weaponizing government may be ahead, he said: “the documents are provided either to Congress or the courts of law and we make every referral we can under the Department of Justice.
“These indictments that you’ve seen, and the ones that you’re going to see coming up here in this near future, are just the beginning,” he added.
The director, a close ally of President Donald Trump, has pressed his team to uncover tens of thousands of pages of documents long withheld from Congress that chronicle abuses by law enforcement and intelligence agencies in scandals spanning from Russiagate and Ukraine impeachment to the Jan. 6 Capitol riot and the raid of Trump’s Mar-a-Lago home in Florida.
Those documents have already led to the indictment of former FBI Director James Comey for allegedly making false statements to thwart Congress during an investigation of news leaks and the indictment Thursday of former National Security Advisor John Bolton for the mishandling of classified information.
Patel asked Americans to be patient, saying some of the abuses of a weaponized government were systematically built over many years and are complex to unravel.
“I have to remind the audience of one thing. Everybody’s like, it’s seven months. What have you guys been doing? Well, they spent 20 years building this diseased temple of corruption,” he said. “It takes a little bit of time to defeat it and beat it down. I’m not asking you to trust me. I’m asking you to look at the work the men and women of the FBI have done so far in these seven, eight months, and just imagine what we’re going to do come the year’s end.”
Patel said one area where the FBI has made rapid progress is the tracking of financing and command structures of anarchist groups like Antifa that have fomented unrest in American cities, attacks on Immigration and Customs Enforcement agents rounding up illegal immigrants and antisemitic movements on college campuses.
He said there are indications that some support may come from overseas enemies and U.S. nonprofit groups that have tax exemptions from the IRS.
“Look, the thing I can tell you is that money doesn’t lie, and the thing we’re doing at the FBI is following the money,” Patel explained. “And thanks to President Trump, we now have Antifa designated, rightfully so, as a domestic terror organization. And we have had multiple investigations going on.”
Patel said those probes are “mapping out the money, and we are using social media and the influencers that the President had here just this last week, because they’re the ones on the ground, getting us ground level intelligence, because law enforcement isn’t able to enter these spaces, and these people are brave enough to do it.”
Here’s Glenn Beck breaking down the various moving parts of Antifa, from the foot soldiers to the funders:
If you’ve been following the story on BattleSwarm (see here and here, just for starters), a lot of the names (George Soros, Tides Foundation, Alliance for Global justice, Open Society Foundations, ActBlue, etc.) are familiar, though he’s missing Arabella Associates, and Fidelity and Schwab are going to be a shock for some.
“Look, I’m I am not accusing anyone here. I’m just saying this is pretty much off the top of my head. I’m just showing the connections that have a very strong odor attached to them. And I’ve followed these people long enough to know this is the way it works.”
I’m hoping Patel has enough evidence to decapitate all the hydra heads once and for all.