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Feb 07

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Does anyone NOT know the key differences between CA versus TX? Anyone…?

Angry man cartoonBoth the business and residential climates in California versus Texas are long known to be diametrically opposed: one is a more progressive state advocating social justice at a “cost” of higher taxes and more regulations while the other espouses lower taxes and less regulations while advocating individual responsibility.   Despite this well-known, long standing difference, Governor Perry of Texas recently arranged to have a 30-second radio ad air for one week on multiple large California media markets (e.g., Los Angeles, San Diego, San Francisco, Sacramento) promoting this difference to persuade Californians to move to a more business friendly Texas.  In the ad, Perry is heard saying the following:

Building a business is tough, but I hear building a business in California is next to impossible. This is Texas Governor Rick Perry, and I have a message for California businesses: come check out Texas. There are plenty of reasons Texas has been named the best state for doing business for eight years running. Visit texaswideopenforbusiness.com, and see why our low taxes, sensible regulations and fair legal system are just the thing to get your business moving to Texas.

It is reported that the Texas state taxpayers footed the $24,000 bill to air the ad.  Admittedly, this is a relatively small amount of money given the size of the California media market.  California Governor Jerry Brown’s initial response to reporters about the ad campaign was the following:

It’s not a serious story, guys…It’s not a burp. It’s barely a fart.

Governor Brown went on  to say he would take the story seriously if the Texan were to pony up a $25 million television and radio campaign. But such as suggestion (and possibly even the smaller amount actually paid) can certainly be described as a waste of taxpayer money.  There are those that love California and those that love Texas, but spending significant funds educating anyone that might confuse the two is not a worthwhile endeavor.

About the author

Nicole Liska

I am a Principal at Fulcrum Inquiry, an accounting and economic consulting firm that performs damage analysis for commercial litigation, forensic accountings, financial investigations, and business valuations. I hold an ABD and MA in economics from the University of California, San Diego. I perform damages analyses and serve as a damages expert witness. My resume is on Fulcrum's website.

Permanent link to this article: http://betweenthenumbers.net/2013/02/does-anyone-not-know-the-key-differences-between-ca-versus-tx-anyone/

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