Texas vs California

Discussion in 'Current Events' started by av8torntn, Nov 26, 2009.

  1. av8torntn

    av8torntn Well-Known Member

    New Geography, the online magazine created by Joel Kotkin and others with a special focus on demographics and trends, has been tracking the implosion of California in an interesting way: by comparing it to Texas.
    Texas and California are America’s two most populous states, together numbering approximately 55 million people, which is only about 6 million less than the United Kingdom, where I live. California, as everyone knows, has a coolness factor that Texas cannot match. Hollywood, Silicon Valley, and wine. Say no more. But, unless one has been living in a cave, everyone knows that the cool state is also the broke state. If Hollywood turned California’s budget and fiscal position into a movie, it would be a blockbuster horror film indeed.
    Texas, on the other hand, is growing, creating wealth, and attracting the entrepreneurial and creative classes that too many people think only go to places like New York and California. This interesting post by Tory Gattis at New Geography explains why. He shares a four-point analysis from Trends magazine:
    First, Texans on average believe in laissez-faire markets with an emphasis on individual responsibility. Since the ’80s, California’s policy-makers have favored central planning solutions and a reliance on a government social safety net. This unrelenting commitment to big government has led to a huge tax burden and triggered a mass exodus of jobs. The Trends Editors examined the resulting migration in “Voting with Our Feet,” in the April 2008 issue of Trends.
    Second, Californians have largely treated environmentalism as a “religious sacrament” rather than as one component among many in maximizing people’s quality of life. As we explained in “The Road Ahead for Housing,” in the June 2009 issue of Trends, environmentally-based land-use restriction centered in California played a huge role in inflating the recent housing bubble. Similarly, an unwillingness to manage ecology proactively for man’s benefit has been behind the recent epidemic of wildfires.
    Third, California has placed “ethnic diversity” above “assimilation,” while Texas has done the opposite. “Identity politics” has created psychological ghettos that have prevented many of California’s diverse ethnic groups and subcultures from integrating fully into the mainstream. Texas, on the other hand, has proactively encouraged all the state’s residents to join the mainstream.
    Fourth, beyond taxes, diversity, and the environment, Texas has focused on streamlining the regulatory and litigation burden on its residents. Meanwhile, California’s government has attempted to use regulation and litigation to transfer wealth from its creators to various special-interest constituencies.
    I wrote an article for New Geography related to the second point last spring. The role played by housing regulations in the housing bubble is one of the most under-reported and under-analyzed factors contributing to the 2008 financial crisis, and nowhere was its destructive force more evident than in California. Regulators lathered on rule after rule to construction requirements, escalating costs so dramatically that lenders had to design “exotic” mortgages so even relatively affluent people could afford homes. One of Texas’s attractions, meanwhile, was the opportunity of much more affordable homeownership.
    Perhaps the analysis above falls a bit short, though, in not giving enough attention to role that the tax structure in California has played in driving people away, and the parallel problem of the state’s hemorrhaging public sector workforce. Kotkin has written in Forbes that California’s government workforce has saddled the state’s budget with $200 billion in unfunded pension liabilities. Kotkin also points out that California has been losing high-tech jobs to the Southwest and elsewhere because of its increasingly hostile tax and regulatory environment.
    By now, the subtext of this post should be clear: the Obama administration is behaving as though California were its model for growth. Increasing unfunded liabilities, proposing $1 trillion in new healthcare spending, responding to the economic crisis with new regulatory agencies but balking on the core causes of the problem—all of this and more betrays a sinister psychology of policy making.
    Like California, the Obama team and their congressional allies seem to think that entrepreneurs and business leaders will simply sit there and take it, doing their “civic duty” by paying new direct and indirect taxes, and complying like obsequious puppies with new regulatory requirements. California provides pretty good evidence that this type of “civic duty” wears thin. The best and the brightest won’t just sit there and take it. We are already seeing this in the UK, where entrepreneurs and the job-creating class are leaving (witness this rather enjoyable account of the situation by London’s mayor, Boris Johnson).
    “Texas vs. California”—hardly any phrase more succinctly captures the battle going on today for America’s philosophical soul.
    Ryan Streeter is a senior fellow at the London-based Legatum Institute and can be followed on Twitter here
     
  2. bbsam

    bbsam Moderator Staff Member

    Couldn't just say "Texas good, California bad"?
     
  3. Jones

    Jones fILE A GRIEVE! Staff Member

    I don't think either one of them are all that great, to be honest.
     
  4. Well, it depends. CA has more hot babes on the beaches; TX has more oil wells.

    What do you value more??
     
  5. rod

    rod retired and happy

    with oil wells you can buy hot babes:happy2:
     
  6. wkmac

    wkmac Well-Known Member

    Understanding I might be called a liberal or feed the accusation the Jones is being an anarchist
    :happy-very:

    But I agree with Jones on this one.

    I guess now I'll go make a cup of coffee and wait to see how long before the "simpletons" arrive!
    :wink2:
     
  7. brett636

    brett636 Well-Known Member

    Texas has no state income tax. That means Texas wins by default.
     
  8. av8torntn

    av8torntn Well-Known Member

    Sorry I'm late what do you need?
     
  9. wkmac

    wkmac Well-Known Member


    For the BC simpleton! You've never fit that bill that I know unless you want to beat the BC simpleton to it? You gonna be the scab and take the "little man's" job?
    :happy-very:
     
  10. tonyexpress

    tonyexpress Whac-A-Troll Patrol Staff Member

    I was born and raised in California and I'm still here!:happy2:

    California is broke, taxes outrages, illegal immigrants everywhere and housing cost ridiculous! We also have earthquakes, fires and mud slides.

    I guess it's easy to distract yourself from reality with all the beautiful weather and so many things to do such as the beach, mountains, pop culture, amusement parks, and sporting events. Oh, did I mention the awesome WEATHER...:happy-very:
     
  11. moreluck

    moreluck golden ticket member

    Can you say "fire ants" ?? No Texas for me!
     
  12. brett636

    brett636 Well-Known Member

    Thats why they make ant traps. Unfortunately they make nothing from stopping your politicians from imposing a 9.75% sales tax, an income tax that can be as high as 10.3% (yikes!), a government who is trying to take out an extra 10% in taxes as a interest free loan from working taxpayers in order to float the government. Lets not get into the guns and ammunition issue. The only thing that keeps California from becoming a 3rd world state is its nice weather. Weather that you can get in states where you will be much more free.
     
  13. Pkgrunner

    Pkgrunner Service Provider

    Is it tea party time in Texas? It will be fun to watch...But at least in Ca we get professional B movie actors as politicians instead of reality TV amateurs:wink2:
    :peaceful:
     
  14. Jones

    Jones fILE A GRIEVE! Staff Member

    All states get there money somehow, instead of focusing just on the income tax you should look at the overall tax burden, which includes sales tax, real estate tax, etc. Texas is at 8.4% and California is at 10.5%, so about a 2% actual difference. I don't really want to live in either state for reasons that have nothing to do with the tax rates, but if you held a gun to my head I would probably go with Ca. The difference in tax burden between the states just isn't big enough to be a deciding factor for most people, if it was we'd all be looking for work in Alaska :happy-very:.
     
  15. moreluck

    moreluck golden ticket member

    "California from becoming a 3rd world state is its nice weather. Weather that you can get in states where you will be much more free."


    That usually involves either severe heat or too high humidity. S. California weather isn't just "nice', it's idyllic !! When we look at the divider islands in the street, they are lush with greenery and flowers. Yes, we pay for the beauty and do it willingly.
    The milldle of the streets where I used to live was an 'island' of dirt with beer bottles & cans and other trash. (13th Street Sandy Utah) Not pleasant to look at.
     
  16. Pkgrunner

    Pkgrunner Service Provider

    I just got pinhead sized hail and rain here for a whole 3 minutes straight... now some distant thunder...it's a bone chilling 58 degrees at 9:30am....Now it all stopped and the sun is peaking through the clouds....God I hate winter time, and I'm glad it has finally come and gone for the year:happy-very:
     
  17. moreluck

    moreluck golden ticket member

    Pkgrunner....I got 2 drops of rain on my head running into Albertson's. Wow, wicked weather!! lol:wink2:
     
  18. Pkgrunner

    Pkgrunner Service Provider

    Be careful out there! I need to go to Costco today; but with this treacherous winter weather, I decided to wait till after lunch to be sure that winter is fully over:happy-very:
     
  19. over9five

    over9five Moderator Staff Member


    I hate you guys.....!!!!!!!!!!
     
  20. moreluck

    moreluck golden ticket member

    Just think, Over......we can't run and do a belly flopper on our Radio Flyer wooden sleds and go flying down the hill of snow....oh wait, with a little drive, yes we can !! :peaceful: