Perspectives No 463: California Dreamin' - Of Jobs In Texas
By John Fund
22 April 2011
It wasn't your usual legislative hearing. A group of largely Republican California lawmakers and Democratic Lt. Gov.
Gavin Newsom traveled here last week to hear from businesses that have left their state to set up shop in Texas.
"We came to learn why they would pick up their roots and move in order to grow their businesses," says GOP Assemblyman
Dan Logue, who organized the trip. "Why does Chief Executive magazine rate California the worst state for job and
business growth and Texas the best state?"
The contrast is undeniable. Texas has added 165,000 jobs during the last three years while California has lost 1.2
million. California's jobless rate is 12% compared to 8% in Texas.
"I don't see this as a partisan issue," Mr. Newsom told reporters before the group met with Texas Republican Gov. Rick
Perry. The former San Francisco mayor has many philosophical disagreements with Mr. Perry, but he admitted he was "sick
and tired" of hearing about the governor's success luring businesses to Texas.
Hours after the legislators met with Mr. Perry, another business, Fujitsu Frontech, announced that it is abandoning
California. "It's the 70th business to leave this year," says California business relocation expert Joe Vranich. "That's
an average of 4.7 per week, up from 3.9 a week last year." The Lone Star State was the top destination, with 14 of the
70 moving there.
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