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California’s Loss Is Texas’s Gain

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California’s Loss Is Texas’s Gain


Texas’s border situation is messy, but its economy remains strong and has been for years. Recently released data show that from 2010 to 2019 Texas led the nation in job gains from business relocations. Meanwhile, California led the nation in job losses from relocations. Texas’s economic model of low taxes and modest regulation continues to outcompete California’s high-tax, high-regulation model for businesses and residents.

A new analysis from the Federal Reserve Bank of Dallas of recently released National Establishment Time Series data confirms that Texas has been a magnet for businesses. From 2000 to 2019, more businesses moved to Texas than left, and the gap between in-migration and out-migration widened in the years just before the pandemic, as shown in the figure below.

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From 2010 to 2019, over 25,000 businesses and 281,000 jobs relocated to Texas from other states. Some businesses and jobs left, too, but on net Texas gained 7,232 businesses and almost 103,000 jobs. Over this period, Texas was second in net businesses gained, behind Florida, and first in net jobs gained, ahead of Florida, Georgia, Michigan, and Arizona. California, New York, and New Jersey had the largest net job losses as shown below.

Many of the jobs that left California ended up in Texas. Over 44,000 jobs left California for Texas, while only 14,700 jobs moved the other way. Oklahoma and New Jersey also sent thousands of jobs to Texas, while Nevada and Virginia gained the most jobs from Texas.

The proximity of Oklahoma to Texas partially explains the flow of businesses and jobs between them, but proximity does not explain the large inflow of jobs from California and New Jersey. Instead, it suggests that entrepreneurs and workers left these two highly regulated, high-tax states to look for success in Texas, a state with lower taxes, cheaper housing, and an overall friendlier business climate. Dozens of studies show that taxes and regulation impact where businesses and workers locate, and the Dallas Fed’s analysis provides further evidence.

Texas is a big state, so when a business decides to move there, it has a lot of places to choose from. The Dallas Fed’s analysis shows that businesses that moved to Texas mostly chose Dallas or Houston. Both metro areas gained more than 80,000 jobs from relocations from 2010 to 2019. Fort Worth, Austin, and San Antonio each gained less than half as many jobs. This may be surprising given how often we hear stories of tech firms moving to Austin, but it reminds us that high-profile moves like Tesla’s
TSLA
relocation from Palo Alto to Austin are just a small share of all business relocations.

Texas’s success at attracting businesses and jobs over the last decade reminds us that basic insights from economics remain true. People will move to states that allow them to experiment, innovate, and expand their businesses, like Texas, and leave states that bind them in rolls of red tape, like California and New York. People also prefer states with lower taxes since this allows them to keep more of what they earn, whether as workers or entrepreneurs. If nothing changes, we should expect the 2020s to look like the 2010s: States such as Texas and Florida will continue to grow while California and New York stagnate or decline.

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California

California man enters US 95, dies in crash southeast of Boulder City, Nevada State Police says

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California man enters US 95, dies in crash southeast of Boulder City, Nevada State Police says


LAS VEGAS, Nev. (FOX5) – A California man died in a crash Friday southwest of Boulder City, Nevada State Police said.

Police sent details to FOX5 on a fatal crash that happened in the area of the US 95 and mile marker 4 in Clark County April 25 around 9:29 p.m. Police said this is about 6 miles southeast of Boulder City.

Police said that the driver of a 2005 GMC Yukon traveled southbound on US 95 in the far right travel lane. At this moment, a pedestrian entered the US 95 from the center median into the path of the driver.

The pedestrian was identified by police as Julian Gusan, a 34-year-old from Redlands, California. Arriving officers at the scene said he died on scene from his injuries.

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He was struck by the GMC’s front, and according to police, the driver stayed on scene for investigating officers.

“The investigation is being conducted by the Nevada State Police Highway Patrol – Southern Command Multidisciplinary Investigation & Reconstruction Team,” police said. “2024 Year to date: The Nevada State Police Highway Patrol Southern Command has investigated 21 fatal crashes resulting in 26 fatalities.”

Police said this year’s fatalities data is preliminary and may change/be updated based on final investigation and coroner reports.



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Map: School Fire west of Grapevine, biggest California wildfire this year

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Map: School Fire west of Grapevine, biggest California wildfire this year


A wind-whipped wildfire in Kern County quickly passed 1,000 acres on Thursday afternoon and prompted an evacuation warning.

The School Fire was reported at 1:41 p.m. east of the city of Maricopa. By 3 p.m. it had burned 1,000 acres, and an evacuation warning was issued for a rural area south of Highway 166.

Within three hours, forward progress had been stopped and the warning was lifted, said a report from the California Department of Forestry and Fire Protection.

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As of 7 a.m. Friday, May 3, the burned area was at 1,479 acres (2.3 square miles) and containment was 50%, CalFire said. The cause was under investigation.

It was the largest of the 10 wildfires logged by CalFire so far this year. Last week’s Refuge Fire burned 475 acres in Fresno County; an Inyo County fire in early April destroyed four structures and forced the evacuation of the community of Cartago.



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A Rabbi's Prayer Poem for California – San Diego Jewish World

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A Rabbi's Prayer Poem for California – San Diego Jewish World


Rabbi Michael Leo Samuel

By Rabbi Michael Leo Samuel

CHULA VISTA, California — Here is a prayer I wrote for National Prayer Day that I delivered Thursday morning, May 2.

Hear the call, California, let’s rise and unite,

In our land of splendor,  from plight to light.

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From redwood shadows to shimmering shore,

Let’s build a future worth striving for.

“Listen,” resounds from valley to peak,

Affordable homes for all who seek.

In cities bustling and towns serene,

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Let fairness dwell, let grace be seen.

Against the shadows of bigotry and hate,

Stand strong for love, let it resonate.

From San Diego’s warmth to the Bay’s cool mist,

Inclusion and safety top our list.

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Housing that’s affordable, a roof for each head,

In neighborhoods where no one fears to tread.

From LA’s sprawl to Sacramento’s streets,

Let’s secure a haven where hope meets.

In tech’s grand hub, let innovation lead,

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To solutions where compassion’s creed.

May Silicon Valley’s minds conceive,

New ways for the Golden State to achieve.

Let California’s dream be vast and bold,

A tale of kindness and courage told.

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With every “shema,” let’s understand,

A call to act, for the future we planned.

Hear the call of the surf, the whispering pines,

For a state where every star aligns.

A haven of peace, where all are free,

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California, let this our legacy be.

*
Rabbi Michael Leo Samuel is spiritual leader of Temple Beth Shalom in Chula Vista.  He may be contacted via michael.samuel@sdjewishworld.com

 



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