Texas will slip into a recession due to falling oil prices
Debate Rounds (3)
First round is acceptance. I hope the opposing side is ready to face a Texan. The opposing side will debate why Texas will go into a recession due to falling oil prices.
As a Texan myself, I hope that you are the winner of this debate, let the games begin!
Now due to historical evidence I can understand why my opponent believes that Texas will fall into a recession, however the economy of Texas has changed since the last recession caused by oil. I live in Austin and the economy here is not based on oil or the oil business, but is instead a service based economy (economy in which a service is provided for currency. ie: banking, shipping, tech support ect.). In fact our economy will do better here in central Texas due to the large amount of tech companies and the fact that plastics will be cheaper due to falling oil prices is a huge boost for tech companies. Now in places like the Houston area this could be a big deal, but even there refining is not as big as it used to be. In fact in Houston a service based economy has taken hold and refining oil is becoming less and less a part of Houston's economy now that shipping and other industries are beginning to grow. In north Texas , Dallas is a huge urban metropolis with a service based industry. So due to Texas's move away from a oil based economy, I believe that falling oil prices will have little to no effect on our economy.
Thank you, Con, I apologize for the late response, and I may not be able to write a full response due to a fever, but we will see.
You see, you claim that the Texas economy has shifted more to other industries, and this is true, but Oil and Gas still remain some of the biggest industries in Texas. You see, the Oil and Gas industry is outpacing most of the industry, even in this job crisis we can observe today.
The ripple effects are everywhere. Think about the role of oil in your life, it is not only the source of many of our fuels, but it is also critical in making lubricants, chemicals, and many other things that we come into contact with every day.
The industry is also responsible for almost $1.2 trillion in annual GDP and supports 1.3 million jobs in manufacturing alone. If you think about the law, accounting, and engineering firms that serve the industry, the pipe, drilling equipment, and other manufactured goods that it requires, and the large payrolls and their effects on consumer spending, you will begin to get a picture of the enormity of the industry.
To visualize the supreme rule Texas has over the industry, just take a look at this graph.
As you can see, Texas makes around four times the gross product and around five times as many jobs as Oklahoma, the next biggest state.
I hope you now understand that, if oil prices do drop enough to warrant a loss of these assets of the industry, it would be disastrous.
ceaser8901 forfeited this round.
Well, I was hoping for a good end to this debate, oh well.
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Vote Placed by lannan13 1 year ago
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