TEXAS & CALIFORNIA: A TALE OF TWO ECONOMIES

With national Democrats hoping to administer a coup de grace to the national Republican Party by turning Texas blue with the expenditure of millions through an ill-conceived undertaking called Battleground Texas, it seems that it might be a good idea to consider the possibility of a blue makeover by taking a look at the economies of Republican Texas and Democratic California.

If Democrats have their way, Texas's electoral votes will be added to those of the other two big states, California and New York, thus making it virtually impossible for Republicans to be movers and shakers on a national level.  However, the odds are (at least from this quarter) that Texans, even Hispanic Texans, will be more than a little reluctant to do that to themselves.  In effect, Texas, if it became Democratic, would truly be shooting itself in the foot.

It is enlightening to look at the steady outflow of population from California.  From 2000 to 2010, the figures for the California exodus show that California had a net  loss of 240,000 individuals to Texas, and that Texas, among the states, was the number one recipient of Californians fleeing the once "Golden State."  Each day now, 170 persons move to Austin, most of them coming from California.  In this regard, the comparison of a few economic indicators might possibly demonstrate why, increasingly, Californians are choosing to take their stand under the Lone Star flag.

The average state outlay in the U.S. for governmental operations per person now stands at just over $10,000. In terms of its expenditures, California annually surpasses that amount by 120%, while the corresponding figure for Texas is 82%.  From 2000 to 2010, taxable income in Texas rose by 37%; and, during the same time period, the percentage increase for California was 31%. It should be kept in mind, though, that Californians have higher incomes, but it is 42% more expensive to live there.

As a percentage of the state economy, California spends 46% more than Texas on state and local government.  More than 5% of the California economy goes toward public benefits, while the figure for welfare appropriations in Texas stands at approximately 3%.  As is well known, public pensions in California have virtually bankrupted state and local constituencies, with the annual amount spent in this regard amounting to $1,100 for every man, woman and child in the state.  The corresponding figure in Texas comes to only $480.  Both Texas and California spend an amount equivalent to 5.5% of their respective economies on education, but, with Texas being able to employ 17% more educators for its educational allocations, the Lone Stat State is getting more of a bang for its buck.  Finally, the unemployment rate in Texas is consistently more than 3% lower than the rate in California.

Clearly, the "Texas model," characterized by less government, lower taxes and a business-friendly environment is much more conducive to growth and prosperity.  Little wonder, then, that Texas has led the way economically during the great recession.  Thus, it goes without saying that Texans will keep this in mind as Democrats begin their great push with Battleground Texas, for it would be absolute insanity to trade the Texas model of economic advancement for the California model of economic stagnation.