1. Texas 2010 population: 25.1 million 2 nd largest state 695,622 km^2

2. Texas vs. California Brenda Pejovich FMRS, Madrid 17th June 2013

3. California 2010 population: 37.25 million 3 rd largest state 423,970 km^2

4. 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

5. 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 4 th highest tax rate

6. 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

7. 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

8. Costs of Living 2012: California's cost of living index was 126% the US average or the 7 th 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 7 th least expensive state

9. 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%

10. Youth Unemployment Texas 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%

11. 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