California and Texas are too stuck in their ideological bunkers
expression, ‘You dance with the one who brung ya’,” says Tom Luce, with a serious face and a strong drawl. “But oftentimes you can’t just dance with who brought you. You’ve got to face the future.” Mr Luce founded a law firm, Hughes & Luce, and served under several Texan governors and as assistant secretary of education when George W. Bush was president.
In the coming decade California and Texas face three main challenges. First, they must remain desirable places to do business, ensuring the creation of well-paid jobs and prosperity for their citizens. On this front Texas is better placed than California, but it cannot take for granted that it will maintain its edge over other states that levy no income tax and offer even lower costs. Second, they must educate their children better.
Texas’s fiscal prudence is wise, as is its culture of seeing business as an ally. Adopting such policies would mean that, when there is a downturn in America’s economy, as there inevitably will be, states are not left with obligations and promises that they cannot meet.
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