Book: Ch. 1 Flashcards
Political culture. Though the concept is somewhat open ended, states do often exhibit a distinctive culture that is the “product of their entire history.” Presumably the political culture of a state has an effect on how _____. Political scientist Daniel Elazar has created a classification scheme for state political cultures that is used widely. He uses the concepts of _____ to describe such cultures. These three state political cultures are contemporary manifestations of _____.
- people participate in politics and how individuals and institutions interact
- moralistic, individualistic, and traditionalistic
- the ethnic, socioreligious, and socio- economic differences that existed among America’s original thirteen colonies
According to Elazar, moralistic political cultures were rooted in _____. In such a culture, politics is the concern of _____, and government is expected to _____. Citizen participation in politics is viewed as _____; people are encouraged to _____ in civic activities.
- New England, where Puritans and other religious groups sought to create the Good Society
- everyone
- take action to promote the public good and advance the public welfare
- positive
- pursue the public good
Individualistic political cultures, on the other hand, originated in _____, where Americans sought _____. A state with an individualistic political culture generally places a _____ value on citizen participation in politics. Politics is a matter for _____ rather than for citizens, and the role of government is strictly limited. Government’s role is to _____.
- the middle states
- material wealth and personal freedom through commercial activities
- low
- professionals
- ensure stability so that individuals can pursue their own interests
Traditionalistic political culture developed initially in _____, reflecting the values of [the something economy and its successor] _____. Rooted in preindustrial values that emphasize _____, traditional culture is concerned with the preservation of _____. In such states, public participation is _____ and government is run by _____. Public policies _____ benefit the interests of those elites.
- the South
- the slave plantation economy (pre-1865) and its successor, the Jim Crow era (1876–1965)
- social hierarchy and close interpersonal, often familial, relations among people
- tradition and the existing social order
- limited
- an established elite
- disproportionately
States can, of course, have cultures that combine these concepts. One book classified Colorado, for example, as having a “moralistic” political culture. California was classified as having a “moralistic individualistic” political culture and New York an “individualistic moralistic” culture. New Jersey was classified as “individualistic” and Georgia “traditionalistic.” Florida and Kentucky were seen as “traditionalistic individualistic.” Often Texas is categorized as having a _____ political culture. Taxes are kept ____, and social services are _____. Political elites, such as business leaders, have _____ voice in how the state is run. In spite of the difficulty in measuring the concept of political culture in any empirical way, it is a concept widely regarded as useful in explaining fundamental beliefs about the state and the role of state government.
- “traditionalistic individualistic”
- low
- minimized
- a major
The political culture of a state can change over time. Texas is undergoing dramatic changes, including some change in its political culture. It is also difficult to classify the political culture of a state as large and as diverse as Texas in any one category. In fact, Texas has _____ political cultures or subcultures within its borders.
- many different
Three long-lasting patterns in Texas politics seem to indicate a _____ state political culture. Indeed, political elites interested in limited government with low taxes and few social services _____ Texas politics today. It is also the case that at least some of these characteristics of state politics are undergoing rapid change. We examine these elements of Texas political culture below.
- “traditionalistic individualistic”
2. dominate
For over 100 years, Texas was dominated by the _____ Party. Winning the Democratic Party primary was tantamount to _____. As we will see in later chapters, this pattern no longer holds. During the 1990s substantial competition emerged between the parties for control of the state legislature. Following _____ the Republicans secured a 7-vote majority in the state Senate and a 24-vote majority in the state House. Between 2002 and 2014 all major statewide elected offices were controlled by _____. The question today is not whether the political culture of Texas will continue to be defined by a powerful Democratic Party, but how that culture will be redefined by two forces: [what two forces?] _____.
- Democratic
- winning the general election
- redistricting in 2002
- Republicans
- a powerful Republican Party in most suburban and rural areas and a resurgent Democratic Party in Texas’s most urban counties
A second pattern that once defined Texas political culture is provincialism: _____ [what does provincialism mean?]. The result often was _____ of diversity and a notion of the public interest that _____ social services and expenditures for education. Some of the more popular politicians in Texas have stressed _____ [related to provincialism] rather than policies that might offer advantages to the state as it competes with other states and with other nations. Like the one-party Democratic state, Texas provincialism has _____ as a defining feature of the political culture. _____ have all undercut Texas’s provincialism.
- a narrow view of the world that is often associated with rural values and notions of limited government
- an intolerance
- dismissed
- cornpone—a hickish rural rejection of modern urban lifestyles—intolerance, and a narrow worldview
- faded
- The growing influence of minorities, women, and gays in state politics, increasing urbanization, and Texas’s relevance in the global economy
A third, continuing pattern that has helped define Texas’s political culture is its longtime dominance by _____. Labor unions are rare in Texas except in _____. Other groups that might offer an alternative to a business perspective, such as consumer interests, are _____ [why is their influence negligible compared to big business?]. Business groups are major players in Texas politics, in terms of _____ [how do they achieve their agenda in politics?].
- business
- the oil-refinery areas around Beaumont–Port Arthur
- poorly organized and poorly funded
- campaign contributions, organized interest groups, and lobbyists
This chapter will investigate the economic, social, and demographic changes that transformed Texas’s political culture during the twentieth century. These changes shook Texas government and politics in the _____ and have continued to shape them in the second decade of the twenty-first century.
1990s
Much of Texas’s history and political life has been shaped by the relationship forged between _____. Texas is the _____ state in size, next to Alaska. To understand the dynamics of political life and governance in Texas demands _____ [think: this section is about geography].
- its people and the land
- second-largest
- an appreciation of the vast spaces and topography that define the state
Perhaps the most distinctive characteristic of Texas’s geography is _____. The longest straight-line distance across the state from north to south is 801 miles; the longest east–west distance is 773 miles. To put this into perspective, the east–west distance from New York City to Chicago is 821 miles, cutting across five different states. The north–south distance between New York City and Charleston, South Carolina, is 763 miles, cutting across six different states.
- its size
Distances alone do not tell the whole story of the diverse geography found in Texas. There are four distinct physical regions in Texas: _____ (Figure 1.1). The distinctive features of these regions have shaped politics in Texas in a number of important ways.
- the Gulf Coastal Plains, the Interior Lowlands, the Great Plains, and the Basin and Range Province
The Gulf Coastal Plains extend from _____ up to _____. As one moves westward, the climate becomes increasingly _____. Forests become less frequent as post oak trees dominate the landscape until they too are replaced by _____.
- the Louisiana border and the Gulf of Mexico, along the Rio Grande
- Del Rio, and northward to the line of the Balcones Fault and Escarpment
- arid
- the prairies and brushlands of central Texas
The eastern portion of the Gulf Coastal Plains—so-called _____—is characterized by _____. Almost all of Texas’s _____ production takes place here. It is also the home of some of Texas’s most famous _____. To the west is the _____. _____ made the Blackland Belt a prime farming area during the late nineteenth and early twentieth centuries. It was a major center of _____ in Texas. Today it is _____.
- east Texas
- hilly surfaces covered by forests of pine and hardwoods
- timber
- oilfields
- Blackland Belt
- A rolling prairie soil
- cotton production
- the most densely populated area of the state and has a diversified manufacturing base
The Coastal Prairies around Houston and Beaumont were the center for the post–World War II _____. _____ plays a major role in the Lower Rio Grande Valley, while _____ is important in the Rio Grande Plain, an area that receives less than 24 inches of rainfall on average every year and during the summer months experiences rapid evaporation.
- industrial boom, particularly in the petrochemical industry
- Winter-vegetable and fruit production
- livestock
Texas’s political life grew out of _____. The land grants made available to Americans willing to come to Texas in the first half of the nineteenth century were located here. This region was the foundation of [think: what did it look like before the Civil War?]. The Dallas–Fort Worth area is located in the northwestern part of this region, once a bastion of a small Republican Party. A union movement grew out of the industrialized areas along the coast, providing support to a liberal wing of the Democratic Party. For the most part, though, the Gulf Coastal Plains were dominated by _____. _____ in Houston and Dallas–Fort Worth have added new dimensions to the political life of this region. Urban areas have become increasingly _____, while suburban areas have become more _____.
- the Gulf Coastal Plains
- plantation life during the antebellum period when slavery flourished in the state
- rural conservative values, be they located in the Democratic Party (from 1876 to the early 1990s) or in the Republican Party (from the 1990s to today)
- Urbanization and suburbanization
- Democratic
- Republican
The Interior Lowlands are an extension of _____. They are bordered by _____ on the east and south and _____ on the west. Beginning to the west of Fort Worth, the eastern edge of the Interior Lowlands has predominantly an _____ economy and a _____ population. The western portion, meanwhile, rises from 750 to 2,000 feet in elevation. The West Texas Rolling Plains contain much level, cultivable land and are home to a large _____ industry. Many of the state’s largest _____ are located here. The region is dominated by _____ [in politics].
- the interior lowlands that run down from Canada
- the Balcones Escarpment
- the Caprock Escarpment
- agricultural
- rural
- cattle-raising
- ranches
- conservative politics and the Republican Party
Pushing down into northwest Texas from the Rocky Mountains to the Balcones Fault, the Great Plains define ____ [what geography and where? How?]. The major city on the northern plains is _____. _____ production dominate the economy. The southern plains economy centers on _____ production, with Lubbock as the major city. Large-scale _____ has played a major role in the economic development of this region. A major concern of policy makers is that pumping out of the aquifer _____ [does what?], raising questions of the viability of basing future growth on the irrigation practices of the past. We will return to a discussion of the problem of aquifer depletion in the public policy chapter.
- the terrain in much of western Texas, rising from 2,700 feet in the east to more than 4,000 feet along the New Mexico border
- Amarillo
- Ranching and petroleum
- agriculture and cotton
- irrigation from underwater reservoirs, particularly the Ogallala Aquifer,
- exceeds replenishment
As in East Texas, _____ political values have a home in the Interior Lowlands and the Great Plains. While representatives from this area have played a major role in the political life of the state over the last 100 years, their power has been ebbing in the face of _____.
- conservative
2. the population pressures of Texas’s expanding urban areas elsewhere
The fourth geographic region in Texas is the Basin and Range Province. Here one finds Texas’s _____ [distinctive geographical features and border with what state?]. To the southeast is Big Bend country, so named because the Rio Grande River surrounds it on three sides as the river makes its southward swing. Rainfall and population are _____ in this region.
- mountains in the Guadalupe Range along the border with New Mexico, which includes Guadalupe Peak (8,749 feet) and El Capitan (8,085 feet)
- sparse
The area running from the Basin and Range Province to the Lower Rio Grande has always had a distinctive political culture, heavily dominated by the fact that _____. In the late twentieth and early twenty-first centuries, the Border region, including El Paso, McAllen, and Brownsville, has remained a _____ bastion.
- Texas and Mexico have been joined at the hip economically and demographically
- Democratic Party
The famous twentieth-century economist Joseph Schumpeter characterized the capitalist economic system as being a process of “_____.” By this he meant that _____. These waves of technological transformation were put into place by entrepreneurs who had visions of new ways to produce and distribute goods and services and who were willing to act on those visions. The capitalist process of creative destruction not only creates a new economic and social world; it _____. The world of railroads, steam, and steel transformed American economic and social life by _____. It also destroyed the local markets that had defined rural American communities since the Founding. The technological innovation tied to _____ restructured the American economy again in the 1920s, leaving in its wake a society and an economy that would never be the same.
- creative destruction
- capitalism was an economic system that underwent periodic waves of transformation fueled by technological innovations in production and distribution
- destroys old ones
- nationalizing the market and making new opportunities available to businesses and individuals during the late nineteenth century
- gasoline combustion engines, electricity, and radio
Schumpeter’s theory of creative destruction provides a useful way to think about the economic changes that have shaped and reshaped the Texas economy. Three great waves of technological change have helped define and redefine the Texas political economy over the last 150 years. The first centered on _____. The second grew out of _____. The third and most recent is tied to _____.
- the production of cotton and cattle and their distribution by an extensive railroad system
- the oil industry
- the development of the high-tech digital economy
Cotton is one of the _____ crops grown in Texas. _____ are reported to have produced several thousand pounds of cotton annually, which were spun and woven by local artisans. Serious cultivation of cotton began in 1821 with _____. _____ promoted the development of the cotton industry. By the mid-nineteenth century, cotton production in Texas soared, placing Texas _____ among the top cotton-producing states in the Union. Although production fell in the years following the Civil War, by 1869 it had _____. By 1880, Texas led _____ in the production of cotton in most years.
- oldest
- Missions in San Antonio in the eighteenth century
- the arrival of white Americans
- Political independence, statehood, and the ongoing removal of the Native American “threat” in the years before the Civil War
- eighth
- begun to pick up again
- all states
A number of technological breakthroughs further stimulated the cotton industry in Texas. First, in the 1870s barbed wire was introduced, enabling farmers to _____. Second, the _____ brought Texas farmers into a national market. Finally, _____ and significantly increase farm productivity.
- cordon off their lands and protect their cash crop from grazing cattle
- building of railroads
- a newly designed plow made it easier to dig up the prairie soil
Throughout the 1870s immigrants from the Deep South and Europe flooded the prairies of Texas to _____. Most of these newly arrived Texans became _____. Tenants _____ [explain what a tenant farmer is]. They generally received two-thirds of the final value of the cotton grown on the farm, while the landlords received the other third. Another form of tenant farming is sharecropping. Sharecroppers _____ [explain what sharecropping is]. Almost _____ of the state farmers were tenants by the turn of the century.
- farm cotton
- tenant farmers or sharecroppers
- lived on farms owned by landowners, providing their own animals, tools, and seed
- furnished only their labor but received only one-half of the value of the final product
- half
Two important consequences resulted from the tenant and sharecropping system. First, it _____. The notorious “crop-lien” system was developed to extend credit to farmers in exchange for liens on their crops. The result often was _____. Second, the tenant and sharecropping system helped fuel _____. These movements played a major role in defining the style of Texas politics throughout much of the late nineteenth and early twentieth centuries.
- condemned many rural Texans to lives of social and economic dependency
- to trap farmers in a debt cycle from which they could not escape
- radical political discontent in rural areas, sparking both the Grange and Populist movements
Cotton production _____ as farmers experienced a series of crises and opportunities during the late nineteenth and early twentieth centuries, ranging from _____ to _____ to _____ [what affected cotton production over the course of Texas/US history?]. The general decline of the cotton culture continued after World War II. The 1930 Census reported that _____ of all farmers in Texas were tenant farmers. _____ of these farmers were sharecroppers. These numbers _____ throughout the Great Depression and beyond. By 1987 only 12 percent of all farmers were tenants.
- cycled up and down
- destructive boll weevils
- an increased demand brought on by World War I
- a collapse in prices following the war
- 61 percent
- One-third
- fell
The history of ranching and the cattle industry parallels that of _____ in many ways. The origins of ranching and the cattle industry extend back to the _____ century, when the Spanish brought livestock to the region to feed their missionaries, soldiers, and civilians. Ranching offered immigrants an attractive alternative to _____. In the 1830s traffic in cattle was _____. This began to change as cattle drives and railroads began opening up new markets in the east.
- cotton
- late seventeenth
- farming during the periods of Mexican and Republic of Texas rule
- limited to local areas
Following the Civil War, the cattle industry _____. As with cotton, the invention of barbed wire helped close off the lands used for grazing. By the end of the nineteenth century, ranch lands had been transformed _____ [from to what?]. As a result, conflicts over land often broke out between _____. As cattle raising became a more specialized and efficient business, periodic conflicts broke out between employers and employees. Throughout the twentieth century, ranching remained a _____ industry, struggling when _____ [what happened to affect the viability / profitability of the industry over time?].
- took off, expanding throughout the state
- from open range to fenced pasturing
- large and small ranchers, as well as between ranchers and farmers
- cyclical
- national and international prices collapsed and thriving during upturns in the economy
Ranching and cotton production remain _____ industries in the state, although increasingly dominated by big agribusiness companies. Texas normally _____ the nation in livestock production. Similarly, it normally _____ other states in cotton production. Over 28 percent of the total cotton production in the United States came from Texas. In 2013 the annual cotton crop was 4.1 million bales, down from a peak in 2005 of 8.4 million bales. Production has fluctuated in recent years because of _____.
- important
- leads
- leads all
- the severe drought that has plagued parts of the state
Neither cotton production nor ranching _____ the Texas political economy as in the past. The number of people making a living from agriculture has dropped significantly over the last 50 years as agribusiness has pushed out the family farm and ranch. In 1940, 23 percent of the population worked on farms and ranches. Another 17 percent were suppliers to farms and ranches or helped assemble, process, or distribute agricultural products. Currently, less than 2 percent of the population lives on farms and ranches, with an additional 15 percent of the population providing support, processing, or distribution services to agriculture in Texas.
- drives
A new set of technological breakthroughs challenged the nineteenth-century dominance of cotton and cattle in the early twentieth century. These breakthroughs focused not on what grew on the land, but _____.
- on what lay beneath it
Oil was first sighted ____ [when and how?]. There was no market or demand for the product, and nothing was done to develop this natural resource. Over a century later, encouraged by a growing demand for petroleum products following the Civil War, a scattering of entrepreneurs dug wells, although they were not commercially viable. The first economically significant oil discovery in Texas was _____ [when and where?]. By 1898 the state’s first oil refinery was operating at the site. Oil production had become _____.
- in the mid-seventeenth century by Spanish explorers
- in 1894 in Navarro County near Corsicana
- economically viable
What catapulted Texas into the era of oil and gas was _____. Located three miles south of Beaumont along the Gulf Coast, the Spindletop discovery produced Texas’s _____. The success of Spindletop encouraged large numbers of speculators and entrepreneurs to try their luck in the new business. Within three years, three major oilfields had been discovered within 150 miles of Spindletop.
- the discovery at Spindletop on January 10, 1901
2. first oil boom
Oil fever spread throughout Texas over the next decade. In north central Texas, major discoveries took place at _____. In the teens major discoveries were made in _____. In 1921 oil was found in the Panhandle, and by the end of the decade _____. The biggest oilfield in the state was found in October 1930 in east Texas. As journalist Mary G. Ramos notes, “By the time the East Texas field was developed, Texas’s economy was powered not by agriculture, but by _____.”
- Brownwood, Petrolia, and Wichita Falls
- Wichita County, Limestone County near Mexia, and once again in Navarro County
- major oilfields were being developed all across the state
- petroleum
The oil and gas industry transformed the social and economic fabric of Texas in a number of important ways. By providing cheap oil and gas, the industry made possible _____ [broad economic history thing]. Cheap oil provided a new fuel for transportation and manufacturing. Railroads and steamships were able to convert from coal to oil. Manufacturing plants and farms were able to operate more efficiently with a new, cheap source of energy, encouraging individuals to _____. Automobile production was encouraged, as was the building of roads. The Interstate Highway System that was built during the 1950s and 1960s changed fundamentally the transportation patterns that shaped the movements of people and goods in Texas. _____ became the heartland of the Texas economy and the location of an increasing percentage of the state’s population.
- a new industrial revolution in twentieth-century America that was fueled by hydrocarbons
- migrate to cities away from farms
- The triangle formed by I-35 from San Antonio to Dallas–Fort Worth, I-45 from Dallas–Fort Worth to Houston, and I-10 from Houston to San Antonio
The oil and gas industry also sparked a _____ of the Gulf Coast region. Among the companies developing the Gulf Coast oilfields were _____. The refineries, pipelines, and export facilities laid the foundations for the large-scale industrialization that would take place along the _____ region. By 1929 in Harris County, for example, 27 percent of all manufacturing employees worked in refineries. By 1940 the capacity of all the refineries had increased fourfold. The petrochemical industry continued to flourish throughout the 1960s, when demand for its products grew at the rate of _____ a year.
- rapid industrialization
- Gulf Oil, Sun Oil, Magnolia Petroleum, the Texas Company (then Texaco, now ChevronTexaco), and Humble Oil (which later became Esso, then Exxon, and finally ExxonMobil)
- Gulf Coast in the Houston–Beaumont–Port Arthur
- 10 percent
One important effect of the oil and gas boom in Texas was the development of _____ in the state. There had been a natural pace to the economy when it was tied to _____. Prices of products could rise and fall, bringing prosperity or gloom to local economies. But there was a bond between the land and the people and the communities that formed around them. Oil and gas, on the other hand, introduced _____. Rural areas were often unprepared for the population explosion that followed the discovery of oil or gas. Housing was often inadequate or nonexistent. Schools quickly became overcrowded. General living conditions were poor as people sought to “make it big.” The irony of the oil and gas business was that _____. Prosperous economic times could quickly turn into local depressions. And when particular fields were tapped out, boom towns could quickly become ghost towns.
- a new rhythm to economic life
- the production of cotton and cattle
- a boom-and-bust mentality that carried over into the communities that sprang up around oil and gas discoveries
- a major discovery that brought large amounts of new oil and gas to market could lead to a sudden collapse in prices
The oil and gas industry also transformed government and the role that it played in the economy. Following the Civil War, a series of attempts to regulate the railroads had _____. In 1890, after considerable controversy fueled by Populist anti-railroad sentiment, a constitutional amendment was passed to _____. This regulatory agency’s powers were extended in 1917 to regulate _____. The Railroad Commission was empowered to _____ [what did it do? What was its function?]. In an attempt to bring stability to fluctuations in world oil prices brought on by the glut of oil on world markets in the 1930s and to conserve wasteful oil production, the commission won the authority to _____. Through the late 1960s the Texas Railroad Commission was one of the most important regulatory bodies in the nation. It was also one of the few _____ regulatory agencies.
- largely failed
- create an agency to regulate the railroads, the Texas Railroad Commission
- energy
- see that petroleum pipelines were “common carriers” (that they transported all producers’ oil and gas) and to promote well-spacing rules
- prorate oil and determine how much every oil well in Texas might produce
- democratically elected
Helping to expand the power of state government in the economy through the Railroad Commission was only one effect of the oil and gas industry in Texas. It also had an important _____ effect on state government. Beginning in 1905 the state collected oil production taxes. These rose from $101,403 in 1906 to over $1 million in 1919 and almost $6 million in 1929. For the 2014–15 biennium, it was estimated that oil production taxes, or severance taxes, would contribute $6.5 billion to the state budget, up from $5.09 billion in 2012–13, an increase of 27.6 percent. Natural gas production taxes added another $2.99 billion to the state budget, down 1.2 percent in 2012–13.16 These numbers represented a sharp turnaround from the previous two decades, when oil and natural gas revenues had sharply fallen. As we will see in Chapter 11 on public finance in Texas, oil and natural gas production has returned to _____.
- fiscal
2. play an increasingly important role in the state’s finances through the severance tax
Much like the state coffers, higher education in Texas has _____ from the oil and gas industry. What many thought was worthless land at the time had been set aside by the state constitution of 1876 and the state legislature in 1883 to support higher education (the Permanent University Fund). As luck would have it, oil was discovered in the West Texas Permian Basin in 1923 on university land. Soon 17 wells were producing oil on that land, sparking a building boom at _____. In 1931 the income of the Permanent University Fund was split between _____, with the former receiving two-thirds and the latter one-third. In 1984 the income was opened up to all University of Texas and Texas A&M schools. Along with the royalties from other natural resources on university land, oil and gas royalties created _____ [what kind of? What relative scale?] university endowments in the world. Today, the Permanent University Fund holds title to 2.1 million acres located in 24 counties, primarily in _____. In December 2012 the market value of the Permanent University Fund was calculated to be $15.881 billion.
- benefited
- the University of Texas
- the University of Texas at Austin and Texas A&M University
- one of the largest
- west Texas
The oil and gas industry had one other effect on life in Texas that is worth noting. Fortunes were made in the industry, and those fortunes paved the way for [a/an] _____ of private philanthropy that would have a major influence in shaping Texas’s culture. Among the most famous examples of this private philanthropy were the Meadows Foundations, established _____ [when and for what purpose?]. The Sid W. Richardson Foundation was founded _____ [when and for what purpose?]. The Bass Performance Hall, which opened in May 1998, was funded by _____.
- expansion
- in 1948 to promote programs in health, education, visual arts, social services, and historical preservation
- in 1947 and supported health and education programs, as well as the development of the arts in Fort Worth
- the Bass brothers, grandnephews of the independent oilman Sid Richardson
One can trace the rise and decline and rise again of the oil and gas industry in Texas through production figures (see Figure 1.2). Oil production in Texas seemed to peak in _____, and there were decades of decline in the state’s production. _____ have led to a new boom era of oil and gas production in Texas beginning in _____ and carrying through until today. In September 2013, 2.7 million barrels of oil per day were pumped in Texas—the highest monthly record since _____. That was a 30 percent increase in production over the previous September’s figures. More than one million barrels of that daily production came from _____ [where geographically?]. This oilfield may be the second largest in the world. The result of this new oil boom is that oil (and gas) is emerging again as a mainstay of the Texas economy, although it is an economy that is far more _____ than in an earlier era. With the new Texas oil boom will come greater resources for the Texas budget. Additionally, with the boom will come new demands for _____ and new concerns over _____.
- 1972
- New technologies such as horizontal drilling and fracking
- 2008
- September 1981, when such records first began to be kept
- the Permian Basin region in west Texas
- diversified
- vast water supplies—an essential component of the new drilling technology—
- the effects that those new technologies will have on the environment
New industries and technologies have come to assume significant roles in plotting the state’s economic future. Among the most important of these was the burgeoning _____ industry.
- high-tech
The movement out of the era of oil and gas and into that of high tech was not an easy one. World oil prices rose in 1981 to almost $35 per barrel. At the time, oil-related businesses accounted for 26 percent of the gross state product. From 1971 to 1981 the average rate of economic growth was 4.4 percent. Fueled by a booming oil-based economy and a rapidly increasing population, real estate prices shot up in _____ [where geographically?]. Projections were made that as oil prices rose, perhaps to $70 or $80 per barrel on the world market, future prosperity was inevitable. Indeed, there was some talk that Texas’s oil-driven economy had become _____. Such talk proved to be premature, to say the least.
- urban areas such as Houston and Dallas
2. recession-proof
World oil prices began to collapse in _____, bottoming out on March 31, 1986, at $10 per barrel. Other sectors of the economy began to suffer as the price of oil fell. Real estate deals fell through, and construction projects slowed and then shut down. Speculators defaulted on their loans, and banks began to fail. Throughout the 1980s, _____ [how many?] banks went under in Texas. At the same time, the state went through _____. The average annual economic growth slowed to _____.
- 1982
- 370
- two major recessions, one in 1982 and another in 1986–87
- 1.7 percent, the worst since World War II