A Tale of Two States

As reported in The Wall Street Journal 37% of all new jobs since the recovery (June, 2009) have been created in Texas. That's because Texas has no income tax, is a Right to Work state, has low regulatory burdens on business, and has implemented tort reform that drove down litigation costs. Quite obviously these are conditions conducive to doing business and growing economically. Unlike, say, California, which lost 11,400 jobs during the same period.

One of the advantageous of Federalism is that it allows the states to try different approaches in government. The evidence here is pretty striking. Yet Washington continues to try to make the national economy more like California than Texas.