Rick Perry: Why Texas is right and California is wrong

The Governor of Texas reveals the secret's of the Lone Star State's economic and cultural success
December 12, 2013

The economic debate currently raging across the United States and, in a broader sense across the world, is between the advocates of freedom and opportunity and those who favour government intrusion and overregulation.

To understand the consequences of opting for this second category, it might be helpful to look at California. Texas vs. California has developed into the standard comparison in the American version of this enduring debate.

Texas, of which I am Governor, represents “red state” values: states that embrace the value of competition and the need for personal freedom. California stands as the “blue state” representative: dedicated to the idea that success is something that can be created and imposed by government control.

As the renowned American economist Arthur Laffer detailed in his most recent study, “Texas vs. California, A Case Study in Jobs and Prosperity,” it hasn’t been much of a contest.The data shows Texas consistently outperforming California in major economic categories such as employment rate, job growth and gross domestic product. We also continue to dominate in terms of population shift. In 2012, 73,000 more people moved out of California than moved in. Texas, meanwhile, saw a net migration growth of more than 100,000 people.

The data confirms what we’ve long believed in the Lone Star State: good things happen when you free people from the restraints of high taxes and over-regulation. Good things like job creation. Over the past decade, for example, Texas has been home to three of every 10 net new jobs created in the United States. Our friends in the blue states don’t trust in things that basic. They still believe you can tax and regulate your way to success. In the process, though, they’re ignoring the lessons that we’ve learned time and time again—a big government that tries to be all things to all people will be nothing to nobody.

People aren’t best served by expansive and intrusive government programmes. They are best served by an atmosphere that fosters the creation of jobs which will allow them to take care of themselves and their families. They’re best served by having the freedom to build their own businesses, and the freedom to excel at whatever they do. That’s how you cultivate a vibrant economy, and that’s how you compete with the world. It’s true for Texas, and it’s true for nations, as well.

And it isn’t just about economic strength, either. It’s about quality of life. For example, by letting people keep more of their own money, Texas has evolved into a national leader in the arts. There are those who believe nobody would ever put a paintbrush to canvas if it weren’t for government grants. But Texas has leveraged the power of private sector philanthropy to build a thriving arts scene across our state, led by individuals and corporations eager to enrich the lives of their fellow Texans in everything from music to museums and ballet. Our capital city, Austin, has bolstered its international status as a creative hub through hosting events such as the Formula 1 United States Grand Prix, the Austin City Limits Festival and the annual South By Southwest conference. While, Dallas is home to the largest urban arts district in the United States, and has built two new performing arts facilities over the last decade. Fort Worth is also a vibrant cultural centre with its impressive Modern Art Museum. And, on any given night, Houston, Texas, has more theatre seats available than any city in America, save New York City.

That’s all created by people donating and investing in projects which they care about. And that’s possible because Texas gives employers and employees alike the freedom to succeed and the ability to do more with their own money. It’s a lesson we should all take to heart, because the stakes for all of our futures simply couldn’t be higher.