More on Texas and California

The cover story of this week’s Economist discusses Rich States, Poor States, the report published earlier this year by the American Legislative Exchange Council.  The subject of an earlier post, the book attributes Texas’ rapidly growing domestic-born population to low tax rates and favorable business conditions and suggests that California’s loss of domestic population is due to a state government that has grown unsustainably large.

The article points out that in addition to increasing numbers of native-born Americans, Texas along with many other states is experiencing large increases in its population of immigrants from Mexico and Central and South America.  While these large numbers are presenting some challenges to the state’s healthcare and education systems, another piece points out:

Texas has proved far better than the other border states (California, New Mexico, and Arizona) at adapting to the new, peaceful reconquista. In California, Proposition 187, which cracked down hard on illegal immigration, was heartily backed by the then Republican governor and passed in a referendum in 1994, though it was later struck down by a federal court. This kind of thing has only ever been attempted in Texas at local level, and even then only very rarely.

For the most part, Texans seem to see immigrants as adding to the diverse skills in the labor market, increasing the size of the economic pie for all of the state’s residents, rather than acting as a drain on fixed resources.

As previously discussed, recessionary budget difficulties may allow states to learn from one another’s successes and failures in fiscal policy.  This same principle holds true in states’ policies in immigration, education, and all other fluid policy issues. The Economist concludes:

Texas still lacks California’s great universities and lags in terms of culture. California could adopt not just Texas’s leaner state, but also its more bipartisan approach to politics and its more welcoming attitude towards Mexico. There is no perfect model of government: it is America’s genius to have 50 public-policy laboratories competing to find out what works best—just as it is the relentless competition of clever new firms from Portland to Pittsburgh that will pull the country out of its current gloom.