[quote=FlyerInHi][quote=EconProf]Since the recession of 2008 CA job numbers are up 7.5% compared to a 14.8% jump for Texas (St. Louis Federal Reserve).
As for GDP, CA up 11.3%, Texas up 38.2%
I’m guessing the low tax, business friendly states of AZ and NV are also welcoming refugees from CA.
Lots of other useful data from a Scripps Ranch economist, Richard Rider, at riderrantsblogspot.com.[/quote]
Economists say that people make rational decisions. So if Texas is so good, why don’t people who think so move there?
You know… mobility of labor, voting with your feet, etc…
If you stay in California, the CPU in your brain must have taken all the available data and computed a superior NPV for remaining here.[/quote]
Actually FIH, it is pretty well documented that outmigration from CA to other states far exceeds in-migration from other states. Our population still grows due to a higher than average birth rate plus the influx of foreigners, legal and illegal.
They leave not only for jobs but the lower taxes and cost of living. Your money simply goes farther.
Allow me to cite my own examples, since I spend half my days in San Diego and half in Yuma, AZ, two and a half hours east of El Cajon, (we own and manage commercial properties in and around Yuma).
A typical Mira Mesa house (3,2, 1600 SF) would cost $220,000 in a good Yuma suburb. Property taxes, @ 2% of market value would be less than the roughly 1.25% of the Mira Mesa house value.
BTW, That MM type house would rent for $1,000 in Yuma.
Yes, AC costs may be $300 during the summer, but drop to $100 in and around winter. Water and sewer bills much lower.
Since traffic is lighter and most everything is within twenty minutes, commuting costs are lower and you save scads of time in your day.
Gasoline is $2.09. Hired labor is cheap. Tonight we will go see La La Land for $5.50 each. Groceries are far cheaper, even compared to the same
grocery chain as San Diego. Fruit and vegetables are cheaper because Yuma is the salad capital of the country.
As for state income taxes, mine are 60% lower in AZ compared to CA, which has the highest rates in the nation.
I suspect Texas is much like Yuma in these respects (except no income tax whatsoever). In short, one’s standard of living depends heavily on the differing cost of taxes, goods, and services in each area.
