In what can best be described as report that provides more propaganda than substance,
the former Reagan White House Economic Advisor Art Lauffer has teamed up with Diane
Arduin a former Finance Director of Governor Schwarzenegger’s to produce a document
that illustrates the economic strengths of Texas over California entitled Competitive
States, Texas vs. California 2010: Economic Growth for the 21st Century.

Recall, Lauffer produces the annual report, ‘Rich States, Poor States’ for the American
Legislative Exchange Council, ALEC which consistently ranks California at the bottom.  
So the slant from this report degrading California’s business environment comes as no
surprise.

But they say timing is everything and unfortunately for the progenitors of the report
and Texas, its release comes at the same time that other information has been released
that presents a more positive perspective on California’s business climate.  For example,
the U.S. Dept. of Commerce released its data on the Gross Domestic Product, GDP growth
of the states.  Contrary to the Lauffer produced report and its findings on how bad
California is for business; the Golden State’s economy continues to see growth and
remains the nation’s largest state economy and the 8th largest economy in the world. 
And from the contents of the U.S. Dept. of Commerce report is a complementary report
completed by the Center for the Continuing Study of California. It illustrates that
California ranked eighth in the nation for gross state product per person at $47,067,
comfortably ahead of the national average of $42,031.  And Texas, supposedly viewed as
an economic rival of California, ranked in 12th place, just above the national average
at $42,526. See 12-03-10 Minute, California GDP at www.CaliforniaBusinessMinute.com.    
                                                 
As it pertains to making comparisons, several recent rankings have been released
illustrating the strengths of California over its supposed Lone Star rival.  For example,
the annual ranking of ‘America’s Healthiest States,’ illustrates that California ranks
higher than Texas.  Sounds like Texans could use some California cuisine. In another
ranking, ‘The 2010 New Economy Index,’ rates states at the forefront of what is necessary
to be competitive in the global, entrepreneurial, innovative and knowledge based economies.
California is ranked 7th, up two from 2009 while Texas is at 18th. And in yet another ranking
entitled the ‘Most Educated Cities,’ two California cities, San Jose and San Francisco were
ranked in the Top Ten in the Nation according to Portfolio.com while there were none from
Texas - too bad Austin. OUCH! 

An educated guess, but this report is nothing more than Hook ‘em’ Horns hubris in the
effort to attract business. 
 
You be the judge:  See http://www.texaspolicy.com/pdf/2010-10-CompetitiveStatesTXvsCA.pdf

‘Messin’ with Texas



Tim Johnson
tjohnson@californiabusinessminute.com