Texas

2010 population: 25.1 million

2nd largest state

695,622 km^2

Texas vs. California

Brenda Pejovich

FMRS, Madrid

17th June 2013

California

2010 population: 37.25 million

3rd largest state

423,970 km^2

Similarities

Geographically, both are 1 of the 3 largest states The most populous states Ethnically diverse with Texas having the largest

population of African Americans and Hispanics over 50% and California at 45%

Long coastlines Border Mexico Abundant natural resources

Texas

2000-2010: Population increased by 5 million

2010: Texas consumed

7.9% of income

State and local

government is 1/3 smaller

than California

California

2000-2010: Net total of 2 million Americans left California

2010: California

consumed 11.2 % of

income

4th highest tax rate

Costs of California Energy

Natural gas: high gas taxes combined with not allowing any new gas refineries → unnecessary transportation costs

Electricity: increased mandates for renewable energy → arbitrary requirements from solar, wind, or other sources, all more expensive than gas

Result: 88% higher industrial rate than Texas

10.8 cents per kilowatt hour vs. 5.73 cents

Costs of California Regulatory Compliance Costs

2008: annual cost to small businesses was $134,122

Restrictions on land use 2012: cost of housing was 176.3% of the

national average 61% of added cost is due to restrictive land use

regulations High Fees: build on private property, greenhouse

gas rules, access to water, and many more

Costs of Living

2012: California's cost of living index was 126% the US average or the 7th most expensive state

Bad public policy choices: high taxes, burdensome regulations, bad lawsuit climate

2012: Texas's cost of living index was 92% of the US average or the 7th least expensive state

Welfare and Poverty

About twice as many households in California receive government welfare compared to Texas

1/3 of American welfare recipients live in California California has the highest poverty rate: 23.5% Texas's poverty rate was 16.5%

Youth UnemploymentTexas California

2012 unemployment rate for 16 to 19 year olds not in school

21.1% 34.6% Unemployment rate for 20 to 24 year olds not in

school

10.8% 15.9% Overall unemployment rate

6.8% 10.5%

Minimum Wage

California has a higher minimum wage than Texas, at $8.00 per hour compared to the national minimum and Texas's at $7.25 per hour

President Obama called for a higher national wage of $9.00 per hour, which would force Texas's minimum to raise

Thus, increasing unemployment in states with a low cost of living, i.e. Texas