Friday, April 22, 2011


Let me first admit to stealing the headline of this article from my brilliant wife. I was telling her about John Fund’s article in the Wall Street Journal about a bunch of California legislators going to Texas to meet with businessmen to find out why they had moved from the Golden State to the Lone Star State.

Her immediate question was “Are they that dumb in California.” What a simply elegant question. It says it all. Of course the answer is that yes, they are that dumb in California. Gov. Jerry Brown just signed another law that will send even more businesses out of California in the next few years.

The law he signed forces power companies, under penalty of fines, to produce about thirty percent of the electric power they sell be generated by renewal energy sources by the year 2020.

That is perfect timing for businesses voting with their businesses location headquarters….in other words their feet. It will give them time to choose another location for their headquarters in a state other than California. Texas just happens to be the top ranked business-friendly state. What this trip by the legislators really necessary to ask why businesses are leaving California. What is the saying: “If you have to ask……”

Fund compares the two states. “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.”

The results of the California experiment is that other states will benefit. The last census reported for the first time in history California lost population and with the new laws being passed and signed by the Democrat majority; look for that trend to speed up.

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