COMMENTARY | Texas Gov, Rick Perry has gotten a pretty big prize on one of his business and jobs rustling raids, in this case the American marketing and sales headquarters for Toyota which is moving from Torrance, California to Plano, Texas.
This means that 5,000 jobs are leaving California and are coming to Texas. This development will be a significant economic blow against southern California, where the headquarters has been located for over 30 years and a corresponding boom for Texas.
There are a number of physical factors involved in the move. Moving the headquarters to the Dallas suburb will put it closer to Toyota production plants in Texas, Kentucky, and Mississippi.
However, the primary reason for the move is that Texas is far more business friendly than is California. Toyota will save many millions of dollars in taxes and regulatory costs by coming to the Lone Star State. The move is yet another example of how California is literally driving out private business, which is being snapped up by other states of the union which are more welcoming.
One wonders how much more of this has to happen before Sacramento gets the message. More importantly, when will a political opposition arise that will demand that the California state government wake up and start enacting reforms that will make the state, which has plenty of inherent advantages, more welcoming to private business.
California has its own fate in its hands. It can enact tax and spending cuts as well as regulatory reform along the lines of the Texas model to stop the hemorrhaging. It would mean a culture shift that would be even greater than the political one that would be necessary.
Otherwise, when it comes to the formerly golden state, it will be a matter of the last coming out please turn the lights out,