California was once the epitome of the American Dream. People migrated there in large numbers, lured by jobs and good services. It still has the glamour of Hollywood and the technology innovation of Silicon Valley, but it is fast going bankrupt. Its roads are falling apart, schools are producing poor results, and prisons release criminals early in order to save money.
Unemployment is nearly 12% and 100 000 people leave the state every year.
Readers of Chief Executive magazine rate it as the worst state in America in which to do business.
By contrast, Texas is their choice as the best place for business. Its economy is growing and attracting entrepreneurs and creative people.
It has virtually no racial problems despite a broad mix of Hispanics, whites, blacks and Asians.
What, then, is right with Texas and what is wrong with California?