California Dreamin’ Has Become Texas Dreamin’

Today’s Wall Street Journal posted an article by John Fund on the migration that is currently taking place from California to Texas. 

Mr. Fund reports:

“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?””

When our government was founded, part of the idea of states was that the states would be laboratories for new ideas.  If an idea worked in a state, it might be carried to the federal level.  If an idea did not work in a state, it would die there, and the state would abandon it as a failure.  That’s a great concept that has not neccessarily worked perfectly.  I live in Massachusetts.  Unfortunately our state medical reform (which has dramatically increased the cost of health insurance and not done much else) was the model for Obamacare.  The tax and spend policies that have failed in many states unfortunately invaded the federal government a long time ago.  It seems as if the idea of states as laboratories is a good concept, but we are copying the unsuccessful and ignoring the successful.  Anyway, back to California and Texas.

The article cites one example of why businesses are moving from California to Texas:

“Andy Puzder, the CEO of Hardee’s Restaurants, was one of many witnesses to bemoan California’s hostile regulatory climate. He said it takes six months to two years to secure permits to build a new Carl’s Jr. restaurant in the Golden State, versus the six weeks it takes in Texas. California is also one of only three states that demands overtime pay after an eight-hour day, rather than after a 40-hour week. Such rules wreak havoc on flexible work schedules based on actual need. If there’s a line out the door at a Carl’s Jr. while employees are seen resting, it’s because they aren’t allowed to help: Break time is mandatory.”

Mr. Fund concludes:

“But if California continues its economic decline, something Texas-sized in its ambitions may be called for– whether it’s a moratorium on new business regulations or a restructuring of the state’s dysfunctional unemployment compensation or litigation. Nothing less is likely to stem the outflow of businesses and jobs from the Golden State.”

California is an amazing state.  It has climates and scenery to please every taste.  It has culture and open spaces.  It is a wonderful place.  I hope the people who run the state begin to look at what they can do to turn California into the paradise for people and businesses that it is capable of being.