Wednesday, October 27, 2010

Texas vs. California, Part 2

Here is a link to an editorial in The Wall Street Journal that looks at the Texas versus California comparisons from the Journal's conservative perspective. Any way you slice it, if you were looking to site a factory you'd probably put it in Texas or a state with a Texas-like business climate.

Texas home prices are quite low by national standards. A month ago a friend of the other DrC bought a nice, little 3 bedroom, 2 bath home with a large backyard in a decent neighborhood of a small Texas city for less than $70,000.

Add to low home prices the absence of state income taxes. Put these two together and a firm can pay its Texas workers substantially less gross salary than would be required to sustain the same standard of living in California, New York, or Massachusetts.