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USANews版 - Texas wins in U.S. economy shift
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Texas became the USA's second-largest economy during the past decade —
displacing New York and perhaps heading one day toward challenging
California — in one of the biggest economic shifts in the past half-century.

The dramatic realignment of the nation's economy was illustrated by North
Carolina, Virginia and Georgia all overtaking one-time industrial powerhouse
Michigan in economic size from 2000 to 2010. The economic winners of the
last decade are states that focus on raw materials, government and senior
citizens. The big losers are places that make things — industrial states
and even California.
USA TODAY examined each state's gross domestic product to determine how the
country's economic output has shifted within its borders. The data, recently
released by the Bureau of Economic Analysis, reflect both population growth
and income increases — in short, the economic weight of each state.
Texas notched one of the biggest increases in size in a half-century,
surpassing $1 trillion in annual economic output. The state gained nearly a
full percentage point in its share of the U.S. economy during the decade,
reaching 8.3% in 2010. This growth in economic clout has been matched only
twice in the past 50 years — by California in the 1980s and Texas itself
during the 1970s oil boom.
"We're growing faster than everyone else, and this trend should last a good
while," says economic forecaster Raymond Berryhill of Waco, Texas. His state
enjoyed "good fortune and good planning" from having natural resources,
immigration and successful technology businesses while avoiding the real
estate bubble, he says.
Florida's share of the national economy grew more than any state except
Texas as seniors took their wealth south. But it was the long-booming state'
s smallest growth of any decade since the government began keeping track in
the 1960s.
Other ups and downs:
•California. The state's share of the national economy peaked in 1990
but shrank faster than all but three states from 2000 to 2010. It's hard for
a large economy — at $1.9 trillion, the nation's largest — to keep
growing fast, especially when hit by a housing downturn, says Stephen Levy
of the Center for the Continuing Study of the California Economy.
•Virginia. The federal government-fueled suburbs of Washington, D.C.,
led this state and neighboring Maryland to a decade of prosperity.
•Michigan. Michigan and Ohio were the only states to end the decade
economically smaller than when it began. "Michigan was the place that
created the 20th-century middle class — the well-paying factory job," says
Lou Glazer, president of Michigan Future, an economic research group. "It
ended so quickly we fell off the cliff."
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