"The contrast is undeniable. Texas has added 165,000 jobs during the last three years while California has lost 1.2 million. California's jobless rate is 12% compared to 8% in Texas."

That about sums it up. California likes red tape, and to tax and spend and as a result, businesses like to leave - "Hours after the legislators met with Mr. Perry, another business, Fujitsu Frontech, announced that it is abandoning California." Fujitsu Frontech is the 70th (no, that is not a misprint) business to leave this year.

Texas, on the other hand, does not have a progressive tax system. Texas has nowhere near the red tape that California has, and their economy is less volatile.