A Changing Economy and Society - Weebly

I’m sick and tired of Texas and all itssorry soil. I drilland drill for waterand don’t getnothin’ but oil.

Businessperson C. M. Rogers

536 ✯ Chapter 26

1970 1975 1980 1985 1990

A Changing Economy and Society1970–1990SECTION 1 An Economic Boom

SECTION 2 Effects of the Boom

SECTION 3 Texans Endure an Economic Crunch

1970 Texas schools areforced to integrate

1973 Bilingual Educationand Training Actpasses in Texas

1981 Texas oil sells for almost $40 per barrel

1983 Texas legislaturefunds new prisons

1984 MALDEF case challengesschool funding practices

1986 Texas oil pricesdrop to $10 perbarrel

1990 Houston becomes fourth-largest city in the nation

1990 Texas population ranksthird in the nation at 17 million

VIEW THE Texas on TapeCHAPTER 26 VIDEO LESSON.

Pump jacks

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A Changing Economy and Society ✯ 537

Before You ReadImagine that you have just received a large amount of money. You decide to keep all of the money in a box. If thebox were lost one day, howwould you feel? To preventsuch a loss from happening in the future, you might keepsome of your money in asavings account, invest some,and keep a smaller amount in your pocket. Many peopleinvolved in the Texas oil indus-try during the 1970s and1980s lost their money whenthe industry collapsed.

Think about

• the benefits of taking risks

• the drawbacks of taking risks

• ways to reduce possible losses

As You ReadIn 1973 a ban on the shipment of oil to theUnited States caused the value of Texas petro-leum to skyrocket. However, falling oil prices inthe late 1980s brought the Texas oil industrycrashing down. Many changes occurred in thestate as a result of the boom and later declinein oil production. Completing this graphic organ-izer for Chapter 26 will help you to understandthe effects of the rise and fall of the Texas oilindustry during the 1970s and 1980s.

• Copy the main idea chart in your TexasNotebook.

• In the boxes in the second row, list fourdetails that support each main idea.

• In the box in the third row, summarize theevents of the 1970s and 1980s in Texas.

Organizing Information

Texas oil business booms.

Texas population

booms.

Texas oil boom ends.

1.

2.

3.

4.

1.

2.

3.

4.

1.

2.

3.

4.

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An Economic Boom1 An Economic Boom

538 ✯ Chapter 26

Why It Matters NowThe economic boom of the 1970sand early 1980s brought greatchange to many areas of the state.

TERMS & NAMES OBJECTIVES MAIN IDEAOPEC, embargo, crude oil,Sunbelt, diversify

1. Trace the boom-and-bust cycle of oiland other leading Texas industries in the second half of the twentieth century.

2. Analyze the effects of oil and otherphysical factors such as climate on major events in Texas.

3. Analyze the effects of physical andeconomic factors on agriculture.

The mid-1970s was a time of majorgrowth in Texas. Oil prices soared,attracting new businesses and indus-tries to the state. At the same time,Texas agricultural products began tobe exported around the world.

Imagine that your uncle owns and manages a business in anotherstate. You want to encourage him and his family to move to Texas.What arguments might you use to convince your uncle that Texas is a better place to live and do business in? What would you say Texas has to offer?

Oil: Driving a Booming State At the beginning of the twentieth century, the development of the

oil industry made Texas one of the leading industrial states in the nation.All through the twentieth century, individual Texas cities and the stateitself went through cycles of “boom and bust” relating to the fortunes ofoil and natural gas.

In 1960 the major oil-exporting nations of the world formed theOrganization of Petroleum Exporting Countries (OPEC). In order tocontrol the price of oil in world markets, these countries agreed to reducetheir production. Then in 1973, in response to political tensions in theMiddle East, the Arab members of OPEC placed an embargo on oil

shipped to the United States. Suddenly, oil was in short supply.In the years before this embargo, the price of Texas crude oil

on the world market had been about $4 per barrel. However, withTexas oil in greater demand, the price of crude oil tripled. Thesecond Texas oil boom had begun. New companies started up inTexas, and by the mid-1970s there were many jobs in the state.

Swarming to the SunbeltSoon people from all parts of the country and the world came to

Texas looking for better jobs and better lives. Many appeared to agree

Write your response to Interact with History in your Texas Notebook.

WHAT Would You Do?

Bumper stickersfrom the boom years

embargo a government orderthat stops or hinders tradecrude oil oil that has not yetbeen refined

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with former governor John Connally that “there’s no better place thanTexas to start over.” Besides its booming economy, Texas benefited fromits location in the Sunbelt. With prices of home heating oil and otherforms of energy at all-time highs, people were drawn by the Sunbelt’smild winters. Also, the automobile and steel industries in the North werelaying off thousands of workers. Many moved to Texas to find work.

The population of Texas grew rapidly. In 1970 the state had 11 million residents. By 1975 another 1.5 million people had come toTexas. By 1980, 3 million more people lived in the Lone Star State.

The oil embargo of 1973–1974 also led to efforts to conserve energy.Automobile manufacturers began making more fuel-efficient cars, andthe U.S. Congress imposed a 55-mile-per-hour speed limit to save gas.Americans also adjusted their thermostats at home.

Texas Enjoys an Industrial Boom The energy crisis took its toll on U.S. industry. But while industries

in the Northeast and the Midwest were failing, industries in Texas grew.Other industries were important, too. By the late 1980s only three statesemployed more electronics workers than Texas. Businesses rushed tomeet new demands for clothing, food, entertainment, and luxury items.The construction and real estate industries also boomed, supplyinghomes, schools, and shopping centers for all the new Texans.

Banks also hurried to the state to supply loans and other financialservices to the oil industry and other Texas businesses. National banksopened branches in many Texas cities. By 1986 banking assets in thestate were around $196 billion.

All this activity, however, strained state resources to the limit. Withmore Texans using water, gas, electricity, and other services, state andlocal governments struggled to keep pace with the demand.

MS

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FL

TN

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PA

NY

VTNH

ME

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RI

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KS

OK

TX

S U N B E L T

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UT

WY

ID

MT

CA

NV

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0 400 Miles

800 Kilometers0

Between the 1970s and 1990s the Sunbelt region in the United States had the highestdistribution of urban areas of any region in the country. ● Which states lie completely orpartially in the Sunbelt? Why do you think the Sunbelt states grew quickly in the 1970s?

▲ During the 1970s and 1980s,as young adults came to Texasto find work, the state becamehome to a growing music indus-try. Willie Nelson’s “progressivecountry” was one of many Texasmusical forms that crossed thetraditional boundaries of blues,gospel, jazz, rock, folk, country,and Tejano music. Janis Joplin, Stevie Ray Vaughan, Flaco Ji-menez, Freddie Fender, andmany other Texas artists becameknown across the nation. AustinCity Limits, a show on publictelevision, broadcast live Texasmusic nationwide. Events suchas the Kerrville Folk Festival, theTejano-Conjunto Music Festivalin San Antonio, and the South-by-Southwest music festival andconference have helped famil-iarize people from around theworld with Texas music. ● Whyis Texas well placed to blendmusical traditions?

To the Arts

Sunbelt Area of the United States

Willie Nelson

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Agriculture: A Changing Way of LifeTexas’s growing urban population had another important effect on

the economy. Agriculture experienced huge growth as Texans used morefood products. However, since World War II large commercial farms andranches had been replacing smaller farms and ranches. Between 1945and 1990 the farm population in Texas dropped from 1.5 million to250,000. In 1990 only about 10 percent of the state’s farms earned 80percent of the state’s farm income. In short, farming in Texas had becomebig business, and agribusiness had replaced the small family farm.Agribusiness was increasingly dependent on the banking industry. It alsodepended on new federal programs to remove some land from produc-tion in order to keep prices high and conserve the soil.

Of course, natural forces still affected Texas farms. Too little rain, toomuch rain, insects, and disease could ruin crops. Also, sudden drops intemperatures could freeze citrus fruits, destroying a whole season’s crop forSouth Texas farmers. This happened four times between 1950 and 1990.

Much Texas agriculture, especially on the High Plains, depended onirrigation. During the 1970s and 1980s high energy costs made irriga-tion costly. Dwindling water supplies and shrinking reserves in the hugeOgallala Aquifer worried farmers. Texas farmers began to use bettermethods of irrigating the land to conserve water.

Farmers and Ranchers DiversifyIn the 1970s and 1980s Texas farmers and ranchers found new prod-

ucts and new markets around the world. The state Department ofAgriculture advised farmers of the best ways to plan, grow, finance, andmarket their crops. As a result, even though cities in Texas continued togrow, agriculture remained an important part of the state’s economy.

In the late 1960s, farmers and ranchers devised a new strategy.Instead of selling grain on the market, they built huge feed lots wherethey fed the grain directly to cattle to fatten them for market. Thischange greatly increased farm income.

Farmers in West Texas depend onwater from reservoirs and aquifers to irrigate their crops. Unfortunately,more water is being removed fromthese sources than is being replacedthrough precipitation. ● What othernatural forces affect Texas farmers?

▲

540 ✯ Chapter 26

The Ogallala Aquifer is themain source of water for theTexas Panhandle, extendingunder 46 counties. It is thelargest groundwater source inNorth America. It extends fromSouth Dakota into Texas. InTexas, approximately 95 per-cent of the water from theOgallala is used for irrigation.Because the aquifer is so im-portant to the region, specialconservation organizations arehelping farmers learn to safe-guard their water resources.

HUMAN-ENVIRONMENTRELATIONSHIPS

TEXAS

OKLAHOMANEW

MEXICO

COLORADO KANSAS

NEBRASKA

SOUTH DAKOTA

WYOMING

Ogallala Aquifer

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When a 1973 trade agreement with the Soviet Union raised the priceof sorghum—an important cattle feed—Texas ranchers began using corn.New types of corn developed by researchers increased the crop yield.Researchers also pioneered new uses for corn, such as an additive for fuel.

Cotton remained an important source of income. However, the farm-ing industry began to diversify. Conditions that hurt one crop might nothurt another, reducing some of the risk of farming. Many Texas farmersbegan growing commercial vegetables, sunflowers (for oil), and sugarbeets. New varieties of seeds allowed farmers to grow soybeans, sugar-cane, and peanuts in more parts of the state. Pecan orchards expandedinto 30 counties of Central Texas. Since the 1970s the growth of vine-yards has led to a developing wine industry.

The livestock industry also expanded and diversified. The number ofdairy farms grew, and sheep and goat ranchers in Central Texas producedwool and mohair. Egg, poultry, and hog production spread to new areas.A few Texas ranchers even began to raise exotic animals such as emu,ostrich, and buffalo.

Some Texas ranchers now raisebuffalo, such as the calves shownbelow, for their meat, which is lowerin fat than beef. ● What are somereasons a rancher might want todiversfy?

▲

diversify to increase the varietyof products

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Sorghum Corn Wheat

The boom-and-bust cycle of farming, cotton, and cattle ranching in Texas forced farmersto diversify their products. ● Which crop showed a decrease in production during the timeperiod shown?

TEXAS FOOD PRODUCTS

▲

Terms & NamesIdentify:• OPEC• embargo• crude oil• Sunbelt• diversify

Organizing InformationUse a diagram like the oneshown to identify positiveand negative effects of theTexas oil boom and other

economic trendsbeginning in the 1970s.

What can youconclude aboutTexas’s economyduring the1970s?

Critical Thinking1. Why did the Texas oil

industry begin to boomagain in the 1970s?

2. What other industriesboomed along with oil?Why?

3. What role did oil pricesplay in fueling Texas’seconomic boom of the1970s?

4. How did agriculture inTexas change in the1970s and 1980s?

Interact with HistoryReview your response toInteract with History in yourTexas Notebook. Imagine itis 1975. Write a formalmemo explaining to youremployees why yourcompany will be moving to Texas.

A C T I V I T YEconomics In small groups, research the boom-and-bust cycle of oil and gas, farming, cotton, banking, cattle ranch-

ing, real estate, or another Texas industry in the late 1900s. Create a poster showing the results.

Go to www.celebratingtexas.com to research the Activity topic.

1

Texas Oil Boom andChanges in Agriculture

POSITIVE EFFECTS

NEGATIVE EFFECTS

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Red Adair is a Texas legend. His skill andheroism in fighting oil fires around the worldhave inspired stories, awards, and a movie,Hellfighters, which starred John Wayne.

Paul N. “Red” Adair was born in 1915 inHouston and raised in the Heights neighborhood.His father was a blacksmith, and young Red pro-bably watched his father working over a hot fire.

Adair quit high school to help support hisfamily. He worked at several jobs before findingwork in the oil fields in 1938. At the end ofWorld War II, he served in Japan finding anddisarming unexploded bombs. After returninghome he worked for Myron Kinley, an experi-enced fighter of wild oil-well fires.

In 1959 Adair formed his own company thatfought oil-well fires. He worked hard and thrivedon the challenge. He showed leadership andcourage, often risking his life to save others. He

also helped develop new techniques and equip-ment, especially for offshore fires. He learned tocap wild wells quickly so fires would not restartand cause injuries.

In 1962 Adair became known worldwidewhen he put out a fire in the Sahara called theDevil’s Cigarette Lighter, which had been burn-ing for six months. Adair’s team controlledhundreds of fires from Rio de Janeiro to the

North Sea over a 35 year period.In 1991 the Iraqi army started

hundreds of oil fires as they withdrewfrom Kuwait at the end of the GulfWar. Fueled by a rich supply of oil,the fires raged across the desert,threatening the environment of theentire hemisphere. Adair’s teamwent to Kuwait and found no equip-ment or water to battle the flames.

Adair flew to Washington andpersuaded President George Bush to

send the equipment needed. Pipelinesnormally used to carry oil to the Persian

Gulf were converted to pump water back tothe oil fields. In eight months the fires were

out and all of Red’s crew returned safely home.Red Adair had helped save the world from envi-ronmental disaster.

Red Adair, Wild Oil-Well Firefighter

542 ✯ Chapter 26

LINKING TO HISTORYResearch information about another heroic figurefrom the 1970s and 1980s. In your Texas Notebook,write the story of this person’s accomplish-ments. Emphasize the ways in which the person showed courage and heroism.

Go to www.celebratingtexas.com to research this topic.

LINKING TO TODAYResearch the oil industry in Texas today. Then useyour findings to write a report comparing the impactof the oil industry on life in Texas during the1970s and 1980s with its impact today.

Debbie Denison, Who Ya Gonna Call . . .Red Adair

Red Adair

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Effects of the Boom2 Effects of the Boom


Why It Matters NowTexas is one of the most populousand diverse states in the nationtoday largely because of the oilboom of the 1970s.

TERMS & NAMES OBJECTIVES MAIN IDEAImmigration Reform andControl Act, amnesty,maquiladoras, colonias,bilingual education,MALDEF, “Robin Hood”plan

1. Explain why immigrant groups came toTexas and where they settled.

2. Analyze how immigration and migrationto Texas in the twentieth century hasinfluenced Texas.

3. Analyze the effects of the growing population in Texas during the twentieth century.

As the oil boom continued, thou-sands of workers flooded Texas insearch of jobs. Important publicservices struggled to keep up. Also,Texas colleges and universities grewand became more diverse, and thestate’s prison system requiredreform.

Imagine that you have been elected to the Texas Senate. You representpeople in both rich and poor school districts. Schools in the poordistricts you represent cannot afford computer labs, athletic equip-ment, or even air conditioning. Schools in the rich districts you repre-sent can afford all these things. Many residents of the rich districtsfeel that they should not have to send some of their money to poordistricts. Both sides want you to support their way of thinking. Shouldyou vote to share money between rich and poor districts?

“Gone to Texas”In response to Texas’s booming economy during the 1970s, people

flocked to the state. Most came looking for jobs in the petroleum indus-try. Others came seeking work in service industries, technology, andhealth-related fields. The state’s population increased by about 3 millionresidents from 1970 to 1980.

Cities also grew and changed.The state’s three largest cities—Houston,Dallas, and San Antonio—attracted thousands of workers in the 1970sand 1980s. The need for housing, services, and quality education in theseareas became a major concern. So did the need to improve air quality andtransportation. Texas struggled to meet the challenges of growth.

Immigration Issues of the 1970s and 1980sDuring the late 1970s and early 1980s, illegal immigration from

Mexico became a big problem. In response, the U.S. Congress enactedthe Immigration Reform and Control Act (IRCA) in 1986. This meas-ure offered amnesty to immigrant workers who had illegally entered the

Write your response to Interact with History in your Texas Notebook.

WHAT Would You Do?

Highway sign warning drivers to watchfor people crossing the border on foot

amnesty a general pardongranted to a large group ofindividuals

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544 ✯ Chapter 26

United States before January 1,1982, and had lived here conti-nously since that time. Manyunauthorized workers in Texaschose to become legal citizensunder this law.

The Mexican governmentalso took steps to reduce illegalimmigration into Texas a processfirst begun in the 1960s. Itpromoted the establishment ofmaquiladoras, or U.S. assemblyplants located just south of theborder. These plants hiredMexican workers to assembleelectronics, toys, clothes, and

auto parts. Workers at the maquiladoras earned salaries that were lowerthan those of U.S. workers but higher than those of other workers inMexico. The low labor costs were popular with U.S. firms.

Maquiladoras along Mexico’s northern border encouraged tradebetween Mexico and the United States. These factories benefited theeconomies of cities located on the border, such as El Paso, Laredo, andBrownsville. Increased trade created a boom in retail business, warehous-ing, and distribution, and it caused populations to grow in counties alongthe Texas-Mexico border. However, because environmental standards arelower in Mexico, Texans have had to cope with pollution coming fromthe plants as well as other problems.

The ColoniasBecause of housing shortages and lack of income, thousand of poor

Mexican Texans and immigrants bought lots and built houses on landoutside city limits. These colonias, or colonies, received no services suchas water, sewage, or trash collection and had no building codes. By 1989an estimated 28,000 people in colonias near El Paso had no water, and53,000 more lacked adequate sewage treatment. The colonias werepolluted, and serious diseases were common. The residents could notafford to pay to have sewer and water lines built to their homes, andcities would not pay to extend them beyond the city limits. Althoughstate and local governments have tackled these problems, they are notyet solved.

The colonias sprang up beyond thereach of city services. ● Why was iturgent for Texas to address problemssuch as lack of clean water andsewage facilities?

▲

Population mushroomed on bothsides of the Rio Grande in the1970s and 1980s. ● Why did somany people move to the area?

▲

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Many large Texas schools, such asPorter Middle School in Austin, areso overcrowded that portable build-ings are used for classrooms. ● Howdo you think overcrowding in schoolsaffects students?

▲

bilingual education a programthat teaches students in their firstlanguage until they are compe-tent in English

A Growing Need for Health CareThe rise in population caused a greater need for state services. Medical

and health-care services were in short supply. Medical costs also rosesharply. Many Texans found it impossible to pay for the care they needed.To answer this need, the legislature passed a bill in 1985 requiring hospi-tals to treat anyone needing emergency services—including those with-out medical insurance. State and university hospital systems grew to meetthe need for health care. The Texas Medical Center in Houston soonbecame known around the world for its advanced medical technology.

Funding Public Education As families moved from other states and countries to Texas to take

advantage of the oil boom, public schools tried to address the growingneeds of students. In 1970 Texas began desegregating schools inresponse to a federal court order. In 1973 the state also began providingbilingual education programs for students whose first language wasSpanish. The state offered some funding for new students and newprograms. Texas teachers, however, continued to earn lower salaries thandid teachers in several other states. Also, relatively few programs wereavailable to help students with special needs.

Also at issue was how education funds were spread throughout thestate. In 1984 the Mexican American Legal Defense and EducationalFund (MALDEF) challenged how the state funded education. Lessmoney was spent on students in poor school districts than on students inwealthier districts. Because most Mexican American children were inpoorer districts, MALDEF charged, these students were being deniedan equal education. In 1989 the Texas Supreme Court agreed.

Several times, the legislature passed laws increasing funding to poorerschool districts, but each time, the court found problems with the laws.Texas governor Ann Richards signed into law a so-called Robin Hoodplan in 1993 that was accepted by the court. Nicknamed “Robin Hood”because it took funds from wealthy districts and gave them to poorerdistricts, the plan was unpopular with many Texans. But the state legis-lature found it difficult to come up with a better solution that would beaccepted by the court.

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546 ✯ Chapter 26

Expanding Colleges and UniversitiesMeanwhile business and industry were demanding more college-

educated workers. To help meet this demand, the University of Texasand Texas A&M University set up more campuses across the state andoffered more courses. Many other four-year colleges also grew, openingmore branches in smaller towns and cities throughout the state. Manycommunity colleges opened to help students prepare for the workplaceand to serve as a bridge between high school and a four-year college.

The student body changed as well. More women and minoritiesapplied to Texas colleges and universities. Groups such as MALDEFand LULAC continued to press colleges and universities to increaseminority enrollment. They also encouraged them to locate in areas ofthe state with large minority communities, such as the Rio Grande Valley.As a result, thousands more people attended college, making Texascolleges and universities much more diverse.

Improving Texas PrisonsAs the population grew, the crime rate rose, and more criminals were

jailed. The Texas prison system was soon overcrowded. In 1972 a stateprisoner sued Texas in federal court because of overcrowding and poorconditions. The state was ordered to end overcrowding and brutality inits prisons and to provide better medical and health services for inmates.Texas began making improvements, but the problem was immense. Inthe 1980s the state legislature provided funds to build new prisons andto update older ones. However, Texas leaders continue to struggle withthe costs of housing criminals and reducing crime.

The University of Texas (UT) ismade up of 15 campuses: 9 academic institutions and 6 health institutions. Today,more than 153,000 studentsattend the UT system. In fall2000, about 54 percent ofthese students were female. TheAustin campus enrolls close to50,000 students, making it oneof the largest universities in thenation. ● Look at the graphbelow. Approximately how manyHispanic students were enrolledin UT in fall 2000?

To Mathematics

Other7.9%

AngloAmerican

46.8%

HispanicAmerican

32.6%

AsianAmerican

8.1%

AfricanAmerican

4.6%

Terms & NamesIdentify:• Immigration

Reform andControl Act

• amnesty• maquiladoras• colonias• bilingual

education• MALDEF• Robin Hood Plan

Organizing InformationUse a cluster diagram likethe one shown to identify at least five ways that popu-lation growth has affectedlife in Texas.

For each negative effect youlist, explain how Texas hasattempted to solve thatproblem.

Critical Thinking1. Why did thousands of

immigrants come to Texasin the 1970s and 1980s?Generally speaking, wheredid they settle?

2. As the population of Texasgrew during the oil boom,what challenges did thestate face?

3. What new types of jobs doyou think were created inthe fastest-growing areasof Texas?

Interact with HistoryReview Interact with Historyon page 543. In your TexasNotebook, explain problemsassociated with evenlydistributing funding to allschools.

A C T I V I T YEconomics Research how the Texas state budget is spent. Create a circle graph of major expense categories. As a

class, discuss the pros and cons of expanding spending on health care, education, and prisons.


2

RAPIDLYGROWING

POPULATION

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Distinguishing Fact from OpinionLEARNING the SkillYou might have heard the expression“Don’t trust everything you read in thepapers.” This saying warns againstaccepting what might be a personalopinion as a statement of fact. To getan accurate view of current and pastevents, it is important to be able todistinguish fact from opinion.

A fact is a statement that can be proved or observed. An opinionexpresses the author’s personalbeliefs and preferences. Although anopinion can’t be proved, it can besupported by facts. To identify opin-ions, look for key words and phrasessuch as I think, probably, may, might,and ought. In addition, statements ofopinion often contain superlativessuch as best, worst, and greatest, aswell as generalizations.

To distinguish fact from opinion, usethe following steps:

• Identify facts by looking for state-ments containing information thatcan be proved, such as specificnames, places, events, dates, andtimes.

• Verify the accuracy of these factsby checking reliable sources,including almanacs, encyclopedias,or state and federal governmentWeb sites.

• Identify statements of opinion bylooking for words that express emotions, beliefs, or preferences.

• Identify the author’s backgroundand purpose. Does the author seekto inform, persuade, or entertain theaudience? How might the author’smotive influence his or her writing?


PRACTICING the SkillRead the following statements on bilingual education from LindaChávez and James Lyons. Then use the steps in Learning the Skilland the questions that follow to distinguish fact from opinion.

It’s time for federal and state legislators to overhaul thismisbegotten program. The best policy for children—andfor the country—is to teach English to immigrant childrenas quickly as possible. American-born Hispanics, who nowmake up more than half of all bilingual students, should betaught in English.

Linda Chávez,“One Nation, One Common Language”

The most important lesson history provides us is thatEnglish-only instruction does not work. It is a myth thatprevious generations of immigrants quickly learned Englishand prospered in America. . . . In 1910, 15% of the foreign-born population aged 10 and over was unable to speakEnglish; in 1990, that figure was only 4.2% of persons 10years and over.

James Lyons,National Association for Bilingual Education

1. Restate the facts in each paragraph that can be checked foraccuracy.

2. List words and phrases in each paragraph that indicate thespeaker’s opinion.

3. Summarize each speaker’s point of view on bilingual educationpolicies in the United States.

APPLYING the SkillFind editorials on bilingual education or interview a teacherabout the topic. List the statements of fact and the opinionsexpressed in each article or interview. Use reliable sources to check the accuracy of the statements. Include your findings in a one-page opinion paper on bilingual education in your Texas Notebook.

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Texans Endure an Economic Crunch

3 Texans Endure an Economic Crunch

548 ✯ Chapter 26

Why It Matters NowBecause of the lessons learned in the 1980s, Texas no longer is dependent on a single industryfor its economic future.

TERMS & NAMES OBJECTIVES MAIN IDEAoil crash, savings and loan association, high-techindustries, tourism

1. Analyze the impact of international eventson the production of goods in Texas.

2. Trace the boom-and-bust cycle of bankingand real estate in the second half of thetwentieth century.

3. Identify the leadership qualities of Texasbusiness and political leaders in thesecond half of the twentieth century.

The collapse of oil prices brought an end to the oil boom in Texas.Texas business and political leadersbegan building other industries.Texas became a thriving center for technology, tourism, and otherindustries.

As the saying goes, “All good things must cometo an end,” and the Texas oil boom was nodifferent. In the mid- to late 1980s, hundredsof oil-related businesses closed, leaving manyTexans without jobs. With fewer people payingtaxes, it wasn’t long until the state itself wasbroke. It was Bob Bullock’s job as state comp-troller to oversee the state’s finances. In a 1987speech to the state legislature, he used humor tosum up the state’s desperate financial situation.

The last time [1986] you invited me to speak,you asked me to talk about money. I said atthe time that I could make the shortest talk in legislative history:you didn’t have any. Today, I would say you have even less.

State comptroller Bob Bullock,speech to the Texas legislature, 1987

In this section, you will read about the far-reaching impact of the oilcrash of the 1980s. You also will learn how Texas changed its economyto avoid this type of hardship in the future.

The End of the Oil Boom At the beginning of the 1980s, Texas truly was an oil state. Thou-

sands of Texas businesses and industries were linked to the boomingpetroleum industry. Oil was, in effect, the financial base of the wholeTexas economy. However, a big change was on the way.

Because of high oil prices around the world, consumers everywherewere learning to use less gas in their cars, less oil in their homes, and fewer

State comptroller Bob Bullock

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petroleum-based products in their day-to-day lives. This decreased thedemand for oil, including Texas oil. At the same time, OPEC decided toproduce more oil for the world market. The decline in use and increase inproduction created a surplus of oil.

Oil prices dropped from $39 per barrel in 1981 to $10 a barrel in1986. Texas oil producers had to sell their oil for about $15 per barrel tobreak even. This bust, or sudden drop, meant they lost money on everybarrel of oil sold—a disaster for the Texas economy.

Feeling the Worst of the CrashDue to the bust in the oil industry, many related businesses

closed. Workers left to find jobs in other states. Suddenlyhomes were left empty and mortgages went unpaid. Store-fronts were boarded up. Schools lost students and cities losttax dollars.

Houston was hit especially hard by the crash, and not onlyin the oil field business. It also had developed multimillion-dollar refining and shipping industries based on oil produc-tion. Thousands of workers lost their jobs, and area oilproducers, shippers, and refiners lost fortunes in profits. Houstonsuffered one of the worst economic slumps in its history. As the state’seconomy grew worse, one thing became clear: Texas had become toodependent on the unpredictable petroleum industry. To steady the state’seconomy, Texas business and industry would have to diversify.

Banks and Savings and LoansIn the 1970s banking was a booming industry in Texas. It was strong

enough to support the growth of many other businesses. When the price ofoil dropped, however, banking also suffered. Banks had lent money to oil-based businesses, which were now losing money. By the late 1980s, sevenof the ten largest commercial banks in Texas had gone out of business.

With the economy collapsing, fewer people were buying real estatefor new homes and businesses. When real estate prices dropped, morebanks and savings and loan associations failed. Many of these institutionshad made extremely risky loans and investments, counting on rising oilprices for future profits. When the oil industry went under, so did they.In the ten-year period from 1980 to 1990, Texas lost 200 savings andloan associations.

High oil prices in the 1970s and1980s taught consumers to con-serve gas. Automakers responded by producing smaller, more fuel-efficient cars. ● How difficult would it be to go from driving a big, powerfulcar to a small car?

▲

The crash of the Texas economyforced many residents to leave theirhomes and businesses to find workoutside of the state. ● How did themovement of workers out of Texasaffect the state economy?

▲

savings and loan associationa financial institution that usesfunds in savings accounts to makeloans, usually for mortgages

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550 ✯ Chapter 26

NEW INDUSTRIES In the 1970s and early 1980sTexas’s main industry was the oil business. In fact, in1983, the oil and gas industry accounted for 28 percentof the state’s tax revenues. However, between 1982 and1994 the oil bust caused the loss of about 33 percentof jobs in the oil and gas industry. By 1993 the petro-leum industry was contributing only 7 percent of statetax revenues. The oil bust threw the state’s economy intoturmoil, forcing Texas to look to other industries forrevenue to support its sagging economy. Growth in thehigh-tech industry helped give Texas a much-neededfinancial boost. By the end of the 1990s, about 25percent of all Texas manufacturing jobs were in thecomputer and electronics industries. Although the petro-leum industry has improved since the oil bust, the high-tech industry remains an important part of the Texaseconomy. ● Besides producing consumer goods, in whatother ways do you think the high-tech industry hashelped the Texas economy?

Oil industry workers High-tech workers

At 12 years of age, MichaelDell ran his own mail-ordertrading stamp business. At 16,he sold newspaper subscrip-tions for the Houston Post.Then in 1984, 18-year-old Delltook $1,000 and turned ateenage hobby of building com-puters into a business sellingpersonal computers by tele-phone. The company’s salestotaled $6 million the first year.By 2000, Dell ComputerCorporation, a multibilliondollar company, had thou-sands of employees inoffices around theworld. ● What qualitiesshown by Dell in hisearly years do youthink may have contri-buted to his success?

Michael Dell

Overall, the state’s banking industry lost nearly $40 billion inresources during the late 1980s. But the losses weren’t limited to Texas.The federal government paid billions of dollars to people with savingsaccounts insured by the federal government as well as to investors wholost their money in failed banks and savings and loans.

Creating a More Diverse EconomyState leaders knew that something had to be done to bring Texas out

of its economic slump. Despite the decline of the oil industry, the statestill had much to offer. Its pleasant winters appealed to industries fromthe Northeast. It had a wealth of natural resources. It also had a largepool of skilled and semi-skilled workers. And it had many colleges anduniversities ready to turn out an educated workforce. Finally, the statehas no income tax, so individuals and corporations pay less in taxes.

Texas leaders stressed all of these benefits to outside industries topersuade them to move to the state. Soon a number of businesses unre-lated to the oil industry were calling Texas home. High-tech industries,which had first come to the state in the 1950s, began to grow, and newcompanies moved in. Companies such as Motorola, Tracor, Sematech, andDell Computers made Austin a center for telecommunications andcomputer-related industries. The Dallas/Fort Worth area, long known for

its aircraft industry, expanded into electronics, communications, andtechnology. Many service industries also moved into the state to takeadvantage of cheap labor. Once again, workers from all parts of theworld began seeking jobs in Texas and moving to the state.

Attracting Tourism Dollars Not long ago, Texas was thought to be little more than oil,

deserts, and ranch hands. By the middle of the twentieth century,

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relatively few tourists had actually experienced the hill country, plains,mountains, or coast. For years the state’s dense pine forests, ancient liveoaks, sandy beaches, and man-made lakes remained a secret.

The state tourism bureau wanted to change people’s attitudes aboutTexas. It began recruiting visitors with the slogan “Texas for a World ofDifference.” With the help of other state agencies such as the Texas StateHistorical Commission and the Texas Parks and Wildlife Department,the bureau praised the state’s historic and natural riches.

Soon visitors were making their way to San Antonio to see theAlamo, which became one of the country’s most popular historical sites.In 1978 the San Antonio Missions National Historical Park was estab-lished. Those who enjoyed history visited sites that honored PresidentsDwight D. Eisenhower and Lyndon B. Johnson.

Some of Texas’s finest natural wonders became state parks andpreserves during the 1970s and 1980s, including Big BendRanch, Pedernales Falls, and Seminole Canyon. The woodedbeauty of the Big Thicket in East Texas became a nationalpreserve, and Guadalupe Mountains National Park openedto the public. Hotels, restaurants, and convention centerswere developed throughout the state. Amusement and themeparks also drew visitors.

In 1950 tourism was Texas’s fifth largest industry. By 1990it had increased to second. With millions of tourists visitingeach year and many different industries popping up through-out the state, tourism had helped Texas successfully diversifyits economy. Once again, Texans could proudly claim thattheir state was a great place to live and do business.

HemisFair ’68, held in SanAntonio, commemorated Texas’shistory and its cultural diver-sity. It helped create SanAntonio’s increase in tourismin the 1970s. It also cele-brated the state’s Hispanicroots. More than 30 nationsand 6.3 million visitors tookpart in the world’s fair. Some of the structures built for the fair, such as the Tower of

the Americas and theInstitute of Texan Cul-tures, remain today. ● How do you thinkHemisFair ’68 bene-fited the economyand citizens of SanAntonio?

HemisFair ’68

Terms & NamesIdentify:• oil crash• savings and loan

association• high-tech indus-

tries• tourism

Organizing InformationUse a diagram like the oneshown to describe how Texashas diversified its economyin recent decades. Identifyat least one Texas industry—other than oil—for each ofthe empty circles below.

What is the relationship be-tween a diversified economyand a more urban Texas?

Critical Thinking1. How did international

events cause the Texas oil industry to go bust inthe 1980s?

2. Besides oil, what otherindustry went bust inTexas in the 1980s? Howdid this affect the Texaseconomy? the U.S. economy?

3. How have geographicalfactors helped Texasdiversify its economy?

A Real-Life StoryReview A Real-Life Story onpage 548. Imagine you arethe state comptroller today.The state legislature hasasked you to give a speechabout the Texas economy.Summarize the state of theeconomy in a few humoroussentences.

A C T I V I T YEconomics In small groups, list types of tourist attractions, such as state parks. Have each group member

research Texas attractions of one type. Compile the information into a database.


3

Oil

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552 ✯ Chapter 26

Texas oil business

booms.

Texas population

booms.

Texas oil boomends.

1.2.3.4.

1.2.3.4.

1.2.3.4.

19701970SS

19801980SS

During the 1970sand early 1980s a worldwide oilshortage causedTexas oil to be in great demand.The resultingoil boomhelped Texasgrow anddevelop inmany ways.When oil

producers in the MiddleEast increasedproduction inthe 1980s, oilprices droppedand Texas facedhard economictimes. State leadersworked to diversifythe Texas economy toavoid similar problemsin the future.

TERMS & NAMESExplain the significance of each of thefollowing:1. OPEC2. Sunbelt3. Immigration Reform and

Control Act4. maquiladoras5. colonias6. MALDEF7. Robin Hood plan8. oil crash9. high-tech industires

10. tourism

REVIEW QUESTIONSAn Economic Boom (pages 538–541)1. How was oil used as a political

weapon in the 1970s? 2. How did the Department of

Agriculture help farmers in the1970s?

Effects of the Boom (pages 543–546)3. What did the Immigration

Reform and Control Act of1986 do for illegal immigrantsin the United States?

4. Why do you think the crime ratein Texas increased even thoughthe economy was booming?

Texans Endure an Economic Crunch(pages 548–551)5. What key Texas industries faced

problems in the 1980s? Howdid Texas respond to the crisis?

6. What was one positive result ofthe oil crash of the 1980s?

READING SOCIAL STUDIESAfter You ReadReview your completed chart. Whichproblems have been successfullyaddressed by state leaders? Whichproblems still challenge Texanstoday?

CRITICAL THINKINGMaking Comparisons1. What other time period in Texas

history can you compare withthe oil boom of the 1970s?

Drawing Conclusions2. Do you think bilingual education

was an important addition toTexas schools in the 1970s?Why?

Comparing and Contrasting3. How were Texas’s economic

problems in the 1980s similarto its economic problems duringthe Great Depression? How werethese two situations different?

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MAP & GEOGRAPHY SKILLSApplying Skills

Besides being located in the Sunbelt, what othergeographical benefits does Texas offer major industry?

SOCIAL STUDIES SKILLBUILDERDistinguishing Fact from Opinion

Cultural changes present challenges for the future. Newindustries in Texas, people moving from place to place,and a rapidly growing population require special atten-tion. Threats of pollution, crime, unemployment, andother problems [continue] in large Texas cities.

With the rising Texas population, basic city servicesbecome a challenge. Roads, solid waste disposal, waterlines, sewer lines, and police and fire protection must besupplied. Buses help solve traffic problems in Texascities. Large cities need community centers for recre-ation. When all of these challenges are met, the cultureis improved. People feel safe in their neighborhoods.

Robyn Montana Turner, Texas Traditions

1. What facts are stated in the selection? 2. What opinions are stated? 3. What do you think is the writer’s point of view

about the future of Texas?

CHAPTER PROJECTCreating a Tourist Map Tourism has become

a major industry in Texas. Why might tourists want tovisit your area of the state? Work together as a class to research tourist attractions in your city or region ofTexas. Then create a tourist map showing where allthese interesting attractions are located. Decide whatstyle of map you will create and how you will highlighteach tourist attraction. Be sure to include major land-marks, roads, highways, bodies of water, and othergeographical features to make your map useful. Whenyou have completed your map, display it in a class-room or hallway, or donate it to your local chamber of commerce.

SCIENCE, TECHNOLOGY& SOCIETY ACTIVITYPreparing for a High-Tech Career High-

tech industries place great value on education at alllevels. Why do you think this is true? Research orconduct an interview with someone who works in ahigh-tech industry. What school courses are importantto specific high-tech fields? What types of skills doyou need to work in a high-tech industry? What typesof character traits are helpful? Share your findings asa class and create a chart listing the types of skillsand character traits needed to excel in the field ofhigh tech.

CITIZENSHIP ACTIVITYPredicting Future Trends Using the Internetand other resources, identify one recent

Texas invention, discovery, or business developmentthat you think will have a major impact on the state’seconomy in the future. Describe the invention, discov-ery, or development in detail. In addition, explain whoor what is responsible and how it might affect thesociety, environment, and economy of Texas. Be sureto include visuals in your explanation. When you havecompleted your research, share your ideas as a class.

Go to www.celebratingtexas.com to research this topic.

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MI

OH

WI

LA

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FL

TN

KYMO

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DEMD

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554 ✯ Unit 7

LEARNING the SkillThis skillbuilder will help youanswer TAKS questions aboutpoint of view. The point of view isthe position from which a situationor event is evaluated. It is theangle from which a story is told.

Point of view as used in socialstudies refers to how your back-ground and beliefs affect the wayyou see a person, event, or issue.As you read about various eventsin Texas history, you probably real-ized that each participant’s pointof view of the event was slightlydifferent.

Just as your physical point ofview changes as you change posi-tions, your mental point of viewmight change as your experiencesand beliefs change.

1 Yarborough’s opposition was probably based on his belief thatthe Democrats for Eisenhower should have —

A selected their own Democratic presidential candidate.

B switched to the Republican Party.

C remained loyal to the Democratic Party candidate.

D protected their political careers by supporting a native Texan.

In 1952 Governor Shivers and Texas attorney general Price Daniel organized a group known as Democrats forEisenhower. Judge Ralph Yarborough strongly opposed these Democrats’ support of a Republican and the splitting of the Democratic Party.

PRACTICING the SkillUse your knowledge of point of view and your knowledge of social studies to answer the question. Read the question and answer explanations that follow to help you answer the TAKS practice questions on the following page.

A Incorrect. There is no information to support this.

B Incorrect. There is no information to support this.

C Correct. Yarborough opposed splitting the TexasDemocratic Party and felt Shivers and Danielshould support the Democratic Party candidate.

D Incorrect. There is no information to support this.

Determining Point of View

Determining Point of View

Identify a person, issue, or topic.

Identify the viewer(s).

Identify the point of view.3

2

1

Farming

3

1

2 Farmers

From the farmers’ point of view, farming was not prof-itable. Many farmers wereunable to operate their farmswithout ongoing debt. Theycould make more money withjobs in industry.

Agribusiness

From a business point of view, farming was very prof-itable. The large farmingcompanies could operatefarms more efficiently. Asagribusiness grew, it createdmore food-products industriesand profits continued to grow.

3

2

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The Great State of Texas ✯ 555

1 “I believe that House Bill 72 is much too strict, espe-cially in the area of passing grades and eligibility.”This quotation is based on the point of view that —

A high school athletes will play professionalsports, so their grades are not important.

B high school athletes should be allowed toparticipate in sports regardless of their grades.

C high schools with good athletes will start losing football games.

D high school teachers should give all athletespassing grades.

2 Which part of House Bill 72 is probably based onthe point of view that better qualified teachers couldimprove the quality of education in Texas?

F stricter attendance rules

G regular testing of all students

H stricter certification guidelines

J greater local control over budgets

3 In his 1964 State of the Union address, LyndonJohnson said, “We must abolish not some, but allracial discrimination.” This quote expressed thepoint of view that —

A racial discrimination was not a problem in some parts of the country.

B racial discrimination did affect some ethnicgroups.

C the United States should protect freedom of speech so people can talk about racialdiscrimination.

D no form of racial discrimination, including separate education facilities for some racial and ethnic students, is acceptable.

4 During the decades of the 1970s through the 1990smillions of people moved to Texas. A very popularbumper sticker during this period showed the skylineof Austin with “NO VACANCY” printed under it.Which group would be most likely to disagree withthis point of view?

F teachers with more students in their classrooms

G people whose businesses were expanding

H commuters spending more time in traffic

J students trying to find housing

APPLYING the SkillUse your understanding of point of view and your knowledge of social studies to answer the questions on this page.

House Bill 72• Placed strict guidelines on teacher certification

• Gave more money to local school districts

• Made attendance rules stricter

• Required that students be tested regularly

• Established “no pass–no play” rule

On your own paper, write brief answer explanations for the correct and incorrect answer choices on this page.

554-555_TAKSTXSE_Unit7_p 11/18/02 10:59 AM Page 555

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