It is not a national election year, but the “red state versus blue state” wars continue. Texas Governor Rick Perry’s recent foray into California, to lure away businesses and jobs, signals more than a rivalry between these two mega-states. The Texas-California competition represents the political, economic and cultural differences driving American politics today – and for the foreseeable future.
Texas and California are robust political and economic competitors. We don’t know which will be the template for the future. As California emerges from its economic and fiscal doldrums and some of Texas’ vulnerabilities become evident, it is now far from certain that Texas will emerge the victor.
California is a global hub for trade, tourism, culture and the manufacture of ideas and intellectual property. From high tech and biotech to entertainment, travel and logistics, the state’s brand transcends national boundaries. The Golden State tops the nation in agriculture. It also sets the pace on green energy development, which could lead to a dramatic increase in the state’s energy production.
The Texas economy has always been based on energy and agriculture. But the Lone Star State has been building a manufacturing and service base, attracting businesses with lower wage rates, weak unions, a friendly regulatory climate and large fiscal incentives. It remains to be seen whether it can maintain its economic momentum and overcome the inevitable obstacles to growth, such as a popping of the latest energy bubble.
California and Texas are political mirror images. Once-Democratic Texas has voted solidly Republican for three decades. Once-Republican California is solidly blue. Texan George W. Bush was trounced in California, home of Ronald Reagan and Richard M. Nixon, in the 2000 and 2004 presidential elections. Barack Obama ran up big numbers in California in both 2008 and 2012 – the opposite of his Texas results. This lopsided pattern of support continues: Obama’s approval rating is more than 60 percent in California, just 40 percent in Texas.