Major Industries of Texas
Unit 13, Section One Notes
Free Enterprise System
• Texas’ economy runs on a free enterprise
system, meaning that people can own and run
their own businesses with a limited amount of
government interference.
• Supply and demand is a big part of the free
enterprise system, and it helps to decide if a
company or industry will make a profit.
• We are now part of a global economy, where
businesses not only compete locally, but with
companies in other states and countries.
NASA Opens in Houston, Texas
Date: 1958
• During the Cold War, the U.S. and Russia competed
in almost every way. After the Soviet Union
launched their first satellite, known as Sputnik, the
United States needed to catch up!
• The government then created the National
Aeronautics and Space Administration to take over
the U.S. space program. We all know it as NASA.
• Houston was chosen as the headquarters for NASA,
which brought many jobs and lots of recognition to
the state of Texas!
Aerospace
• NASA was created in 1958 and the Johnson Space
Center, the headquarters for NASA, was built in
Houston, Texas.
• The 1000 acres set aside for the NASA buildings were
donated by Rice University. It also supports the oil and
gas industry because so much fuel is needed for
launches and to create shuttles.
• NASA was not created until Russia launched Sputnik
during the Cold War. This scared the U.S.! NASA then
had a goal, set forth by President John F. Kennedy, to
send a man to walk on the moon.
• The Johnson Space Center has improved space
satellites and developed new technology that is still in
demand today.
Aerospace
• The International Space Station could be called the
biggest scientific project in history. Led by the
United States, the International Space Station
unites scientists from 17 different countries. They
work to research aspects of space exploration, and
they also observe the Earth from their far off view.
They can see changes in the environment caused by
pollution and natural causes from space!
Aerospace Fun Facts
• Sputnik was only in space for 98 minutes!
• The Johnson Space Center was named after
President Lyndon B. Johnson, a Texas native.
• Over 3000 people work for NASA in Houston alone.
• NASA has had an influence in Houston in many
ways. The Astrodome was named for the Aerospace
Industry in Texas. So was Astroturf, which was first
used in the Astrodome!
Aerospace Sacrifice
• Many astronauts, including ones from Texas, have
died while attempting to do what many of us would
never try: enter into space and explore the great
unknown.
• In 1986, the space shuttle Challenger left from
Florida and exploded 73 seconds into its flight. A
teacher was onboard, attempting to be the first
civilian in space.
• The shuttle Columbia was destroyed in 2003 as it
tried to re-enter Earth’s atmosphere over Texas.
Challenger, 1986
Walter Cunningham
• He was aboard the first Apollo spacecraft to
carry astronauts into space. He and three
other astronauts successfully orbited the
earth 163 times before returning safely after
11 days in space.
• For his bravery, he earned the American
Legion Medal of Valor.
Medical
• The medical profession first became a huge industry
in Texas beginning in the 1950’s and 1960’s. People
from all over the world travel to Texas because of
our very successful cancer and heart research
facilities.
• The M.D. Anderson Cancer Center was created by
the Texas State Legislature in 1941. It is located in
Houston and employs over 16,000 people. It is now
one of the biggest and most respected research
centers in the world.
Medical
Some of the greatest medical advancements
have been made in Texas.
• Michael DeBakey was one of the first cardiovascular
doctors to perform experimental surgeries on the heart
and attempt to invent synthetic organs and blood
vessels. He performed the first successful coronary
bypass surgeries in Texas.
• Denton Cooley, a doctor from Texas, performed the first
human heart transplant in the U.S. in May of 1968 in
Houston, Texas. He also installed the first ever artificial
heart. He is still at the Texas Heart Institute in Houston
today.
Dr. Michael DeBakey
Dr. Denton Cooley
Benjy Brooks
• Benjy Brooks was the
first woman to become
a pediatric surgeon in
the state of Texas.
• She worked at both the
Texas Children’s
Hospital and St.
Joseph’s Hospital in
Houston.
• She did research on all
types of illness!
High Tech
Many technological advancements have been made in
Texas by Texans!
• The “computer chip” or the integrated silicon circuit
that runs almost all computer games and hand-held
devices was invented by a man named Jack Kilby in
1958. As a professor at Texas A&M and an engineer
at Texas Instruments, he also invented the portable
calculator. Because of his chip, the U.S. was able to
launch small satellites into space. He won a Nobel
Peace Prize in 2000 for his efforts.
Jack Kilby
High-Tech
Two very advanced High-Tech companies call
Texas home.
• Texas Instruments is based in Dallas, Texas. Originally
started as an exploration service for oil companies, TI
started making electronics for the army in World War II.
Jack Kilby helped Texas Instruments grow into the
computer and semiconductor giant it is today.
• At the age of 18, Michael Dell used $1000 to start his
own business of making people personal computers.
He founded Dell Computers in Austin, Texas in 1984,
and it has since produces the largest number of
personal computers in the world. They have made over
$32 billion and Dell employs 38,000 in Texas.
Texas Instruments
Dell Computers
Tourism
We all know that Texas is awesome, and know
people come from all over the world to see why!
• In 1950, tourism was Texas’ fifth largest industry,
but now it is the 2nd largest! Tourism allows for
thriving restaurants, hotels, and amusement parks.
• San Antonio is one of the most popular cities in
Texas, probably because of the Alamo. Over 2.5
million people a year come from all over the world
to see the Alamo. They also visit the River Walk, Sea
World, and Six Flags Fiesta Texas.
San Antonio Riverwalk
Tourism
• Texas is also home to not one, but two presidential
libraries! Each president erects a library after their term
in office is over. Lyndon B. Johnson Library is at the
University of Texas in Austin. It is the only free
presidential library, so you don’t have to pay a fee to
visit. George Bush Sr. has his Presidential Library at the
campus of Texas A&M in College Station. A third library
is about to be built for President George W. Bush near
Dallas, Texas.
• Texas is also visited often for our National Parks. Parks
like Bastrop State Park and Seminole Canyon offer
visitors places to hike, bike, and camp.
Presidential Libraries
Lyndon B. Johnson Library
George Bush Sr. Library
State Parks
Bastrop State Park
Seminole Canyon State Park
Oil and Gas
The oil business exploded in Texas after the discovery
of oil at Spindletop on January 10, 1901.
• Often called Texas Gold, petroleum has brought
economic prosperity to Texas off and on for the last
100 years. It has changed the shape of countless
towns throughout the state.
OPEC Oil Embargo and
2nd Texas Oil Boom
Date: 1973 – 1982
• In 1973, the Organization of Petroleum Exporting
Countries (also known as OPEC) banned
shipments of oil to the U.S. for political reasons.
This drove up the price of oil substantially and
caused gas shortages throughout the nation.
OPEC Oil Embargo and
2nd Texas Oil Boom Continued…
• Though it hurt the national economy, Texas oil
companies made a killing! People working for
the oil companies also made large profits.
• Eventually, this second oil boom ended like
the first. Increased production led to a drop in
prices. Supply exceeded demand. More than
200,000 people in Houston alone lost their
jobs. This also led to a bust in the real estate
market!
Real Estate
1970’s to Present
• In the 1970’s, unemployment was low in Texas.
Because of this, real estate was in demand and
more buildings were built.
• Then, unemployment increased in the 1980’s and
the real estate market decreased.
• This kind of boom and bust cycle continues in Texas
with the real estate market.
Banking
• After the Great Depression, the government took steps
to ensure that another depression would not happen.
Laws were passed to make sure that businesses were
being run in an honest way.
• By the year 2000, the economy in Texas was booming
and loans were taken out by people to buy homes, cars,
and commercial property.
• Then, the economy slowed down and people couldn’t
pay those loans back.
• It came out that many banks were giving loans to
people who couldn’t afford them in the first place!
• This is an ongoing situation for the state and the
country.
Agriculture
• Agriculture has always been an important source of
jobs in the state of Texas.
• Texas agriculture has grown to include cotton, rice,
sugar, vegetables, fruits, cattle, poultry, and timber.
We sell to many other states and countries
throughout the world.
• Texas now has the third largest fruit industry in the
United States!
Agriculture Continued…
Agriculture is successful in Texas due to many
technological advancements.
• Barbed Wire
• Windmills
• Irrigation
• Tractors and other mechanized devices
• Soil conservation