Rick Perry Goes Job Rustling, Again

Gov. Perry buys radio ad time to poach jobs from California. Is his desire for short-term growth a risk to the state and country's future?

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Jim Young/REUTERS

Texas Governor Rick Perry sits down for lunch at The Drive-In Restaurant in Florence, South Carolina, January 17, 2012.

Governor Gov. Rick Perry is airing 30-second radio spots in six California markets inviting businesses to relocate to Texas, according to the Austin American-Statesman.

“Building a business is tough, but I hear building a business in California is next to impossible,” says the governor in the radio spot. “This is Texas Gov. Rick Perry, and I have a message for California businesses: come check out Texas. There are plenty of reasons Texas has been named the best state for doing business for eight years running. Visit texaswideopenforbusiness.com, and see why our low taxes, sensible regulations and fair legal system are just the thing to get your business moving to Texas.”

The new ad, which you can hear here, was purchased by the Texas Economic Development Division and will last for a week, hitting media markets in San Francisco, Sacramento, Los Angeles, Inland Empire and San Diego.  Gov. Perry has a history of taking jobs from other states, as TIME’s Massimo Calabresi noted last year:

He is a master at the theater of job poaching. During a trip to California last November, Perry crowed that he had stolen 153 businesses from the Golden State in 2010; some 92 companies moved the other way, leaving Perry with a net gain of 61 businesses. And he’s prone to high-visibility gestures. Last October, as Washington State was preparing to vote on an income tax for those earning over $200,000, Perry sent a letter to 90 businesses, including Microsoft, Starbucks and Amazon, telling them, “If Washington doesn’t want your business, Texas does.”

Poaching jobs is intertwined with the “Red-State Model” expressed on today’s front page of the Wall Street Journal.  Republicans like Kansas Governor Sam Brownback are attempting to revive their state and party with Perry’s methods for job creation, which netted by far the most jobs in the three years after the recession ended in June 2009.

Texas doesn’t have a personal or corporate income tax, and red states want to cut taxes and government to grow.  In Brownback’s State of the State address last month, he touted reducing the top income tax rate from 6.45% to 4.9%, and then said, “Look out, Texas. Here comes Kansas!”

The mindset must be contagious. Republican governors of Indiana, Oklahoma, Nebraska, Louisiana, and Ohio have all proposed reducing the individual income-tax to attract jobs, and all five have the Republican control of their legislatures to do it.

But job poaching isn’t cost-free. Perry and Brownback have given up long-term investment in their state for a short term boost to their job numbers.  The WSJ mentions that to make up for his income tax slash, Brownback has “chopped thousands of state jobs, merged government departments, and removed thousands of Kansans from the welfare rolls.” Still the government will be underfunded and, in four years, Kansas will have to cut $780 million to prevent a deficit, which is illegal under state law.

In Texas, the gain in jobs from 2009 to 2011 has been a loss for the Texan student.  During those same three years average spending per enrolled student declined 10.4%, while nationwide, the same measure increased 3.7 percent over that period, according to the Dallas News.

Will Texans, Kansans, and residents of the other 19 states who are controlled by a Republican governor and legislature benefit from a short term boost from job poaching? Or will coming generations in those states lack the skills to compete globally? No one, including Perry and others following his example, knows the answer to that question.  What they do know is that they can score short term political points as they stimulate and boast their state’s job numbers.

45 comments
SoquelCreek
SoquelCreek

California Governor Jerry Brown's reacted to Texas' meager advertising buy, calling it "barely a fart."  Unfortunately, due to Governor Brown's comments, the Texas ads received coverage in every major California newspaper and were picked up by weekly magazines and cable news networks.  Governor Brown gave Texas lots of free advertising and publicity.

I'm a fourth-generation native California.  I'm appalled by what has happened to California.  The joke is that Texas' most-successful jobs program operates freely from inside the California capitol dome.  It's called the California Legislature.  I don't blame Texas for calling on some of the world's most successful companies and individuals.  California's Legislature and governmental policies don't seem interested in keeping these successful people and businesses in California,  although they would be instrumental in growing prosperity in Texas.

There are plenty in California willing to bad-mouth Texas.  Unfortunately, many of these California apologists are completely blind to our own, significant failings--most of them self-inflicted.

Smackdown: California vs. Texas

(or the Great "More Taxes" vs. "More Texas" Debate)

http://soquelbythecreek.blogspot.com/2013/02/the-great-texas-vs-california-smackdown.html

JoeWiles
JoeWiles


What Perry fails to mention is that he is a Sultan who has remained in power for what seems to be indefinite, supported by the corrupt oil interests that sent the world into a tail spin in an oil grab that the have profited from on the backs and lives of americans.  He has participated in electoral fraud using every attempt to destroy the hispanic vote that would surely vote him out and put in a democratic governor.  The low tax base he has is by keeping depressed wages and not allowing union activity and treating people like a serf underclass who can barely live on their wages but who contribute to the perverse profits of the companies he convinces to get on the human exploitment bandwagon.  I wont even begin to go into the draconian criminal industry to subsidize his townships that further keeps people in a permanent underclass by taking away the paltry wages I mentioned by fining them and ticketing their freedoms away.  So yes, Texas is a third-world country within the union that has somehow escaped federal oversight that would bring an end to the destruction of human condition in its state and fattening up a few inbred texan dynasties.  If this is the new business model for all states, we need to rethink what the country will look like if it goes down to the Texan level.  We got a taste of what that world looks like after illegal wars by a few texan oil opportunists acting dangerously outside of what was needed for the country for personal enrichment.  And they well know that impeachment is a joke. 

nflfoghorn
nflfoghorn

King of TX needs to quit salivating.  His national asperations for higher office are shot to heck and he can't be governor forever. 

straydog
straydog

That any company would want to leave CA, regardless of the greater expense, for TX, is laughable. CA is such a sought after location for businesses because of numerous reasons, once of which is its location on the coast, resulting in easy flights/shipping across the pacific for international business; there's major airport hubs right at your doorstep. It's also an area that's great for recruiting very talented, tech-savvy young adults who have their fingers firmly planted on the vein of 'what's new'. Undoubtedly the weather helps too---moderate humidity, water is generally nice (and doesn't smell like the Gulf, so bonus points there), and it's usually sunny (without being ridiculously hot). And let's certainly not forget the social 'climate' differences between states. TX certainly isn't winning any popularity contests with the new generation of young adults who are increasingly open-minded and tolerant. Places like CA and WA, as mentioned in this article, are fairly well known for their open-mindedness and their increasing community focus ('We', not 'I').

Taxes may be better in TX, but a successful business needs more than just lower taxes to thrive, Perry.

DonQuixotic
DonQuixotic

Well if anyone wants to flee the stupid of Texas we'd be happy to welcome you to Virginia (even though we have our own bouts of stupid from time to time).  We've had three straight years of budget surplus.

grape_crush
grape_crush

Sure; come join the national race to the economic bottom. 

Apparently Perry didn't see The Most Important Chart in American Politics.

Jerry Brown's Economic Development Office has a good response...

  • “I can understand why Rick Perry is interested in California. We were the national jobs leader for most of the last year with 257,000 new private sector jobs,” said Kish Rajan, director of the Governor’s Office of Business and Economic Development. "But business relocations only account for 0.03 percent of annual job losses in California. At that rate of growth, it would take 20 years to lose just 1 percent of our businesses to relocation. The reports show that no state has ever poached their way to long-term prosperity. Real job creation comes from California’s history as a national leader in start-ups and the expansion of homegrown businesses.”

    Poaching doesn’t work. This is something so many governors have done before and with the same ineffective results. One of the only real studies that’s ever been done on this, by the Public Policy Institute of California (PPIC), called it insignificant. During the two years of the highest departures in the study, California lost just 0.05 percent of the state’s total establishments. At that rate, it would take 20 years for California to lose just one percent of its business establishments due to out-of-state relocation.

    And if you take a look at the new report from Good Jobs First in Washington D.C., you’ll see how little it actually got our visiting governor. In the first seven years of Perry’s administration, Texas got an annual gain of 0.03 percent in jobs gained from relocation. Even if you double that rate, it would still be an extremely small impact. So basically the report says that Texas officials should spend 99.97 percent of their time and money on everything else but chasing other state’s jobs.

    There have been several high-profile company expansions this year including:
  1. Samsung, which opened a major research-and-develoment facility in San Jose
  2. Sutter, which built a new health care facility in Roseville that will employ over 1000 people
  3. Amazon, which announced three distribution centers across the state
  4. Caterpillar, which recently opened a 400,000 square-foot distribution center in Kern County to support a resurgent construction market which has grown by 4.4 percent this year

mantisdragon91
mantisdragon91

Translation- Let us help you lower the standard of living for your employees and further weaken the middle class.

Sue_N
Sue_N

Sure, come to Texas where you will find an undereducated workforce (because we don't believe in spending money on schools), a workforce prone to illness (because health insurance is for commies), an outdated roadway system that can't support the current population, much less a future one, a worsening water problem, and a chronically stupid government. Also, be sure you and all your employees are familiar with the Bible, because that's the only science and history you'll get here.

DonQuixotic
DonQuixotic

California should run ads in Texas encouraging them to leave their state.

"Living in California can be tough sometimes, but I hear living in Texas can be a nightmare.  I mean, have you guys seen the things your legislature has done over the past decade?  These are people that openly want to secede from the Union.  Come to California; we're not crazy"

notsacredh
notsacredh

"Rick Perry Goes Job Rustling, Again"

.

And God shakes his head, lights a match and prepares to torch Texas. Again.

Tero
Tero

"...will coming generations in those states lack the skills to compete globally"

Keep on slashing taxes for the rich and corporations, while reducing investment in education and this will be a problem for every state, very soon.

MrObvious
MrObvious

Moving jobs from one state to another only depress wages further.



Sue_N
Sue_N

@nflfoghorn The odds are that he won't be governor much longer. A recent PPP poll found that, even among Texas Republicans, Perry is deeply unpopular.

Of course, lest anyone imagine that sanity might be returning to Texas politics (ha!), the man most Texas GOPers seem to want to take Goodhair's place is our AG Greg Abbott, who is making a career of suing the Obama administration ... and losing. He also just lost a case over Texas school funding, which a district court declared unconstitutional. Oh, and in the Voter ID court battle, he exposed millions of Texans' social security numbers. Abbott, who is in a wheelchair, has also worked to have the ADA struck down and is a huge proponent of tort reform even though got $10 million in the lawsuit over the accident (falling tree limb) that cost him the use of his legs. (So, you know, lawsuit with big payout good for him, bad for everybody else.)

Abbott is definitely one to watch. He's mean, vindictive, power-hungry and ruthless, and has absolutely no qualms about using his office to further his political ambitions or his party's agenda. And the Texas GOP desperately wants him to be governor instead of Perry.

Sue_N
Sue_N

@straydog I've wondered how the "social climate" in Texas is going to influence businesses coming here in the future.

As more and more companies move toward adopting a climate of openness and acceptance of gays, how much is Texas' hostility to gays going to affect that? Right now, Perry's about to have a cow because his beloved Boy Scouts are about to allow gay Scouts and Scoutmasters. What's he gonna do when businesses start pressuring the state to provide partner benefits and such? At some point, Texas' (and the South's) institutionalized homophobia is going to start taking a toll. Maybe when it starts costing them business, and tax dollars, they'll have a revelation and join the rest of us in the 21st century.

(Though here's a nice bit of irony: one of Ted Cruz's biggest backers is a gay libertarian. Only in Texas, folks. Only in Texas.)

bobcn
bobcn

@grape_crush  Could it be that Perry is less interested in poaching jobs than he is in getting himself some national media exposure at Texas's expense?

aztecian
aztecian

@DonQuixotic texas is the redneck capital of US.  texas and its governors are good old boys from the whtiewing.

reallife
reallife

@DonQuixotic yes! come to California! where food stamps are aplenty! come and live like a Mexican! one step closer to Tijuana! Vamonos! yeeeeeeehaaaaaaaa!

Sue_N
Sue_N

@MrObvious Texas - or, rather, our idiot government - does not care about other states, or wages, or workers. All Texas cares about is corporations (and their money), guns and the individual (so long as that individual isn't poor, sick, out of work, a public school student or teacher, non-white or a woman.

This is a state that wants to arm its teachers but not pay them, and can't see the various ways that might just end badly.

AfGuy
AfGuy

Fox News, the NRA, and talk radio should be VERY "proud" of what they have wrought...

Paranoia and a bunker mentality on a national scale.

AfGuy
AfGuy

@MrObvious 

The concept of "for the common good" is lost on these yahoos.  Their concern ends at whatever border (state or personal) is most of concern to them.

I happened across the C-SPAN broadcast for the hearings in Connecticut.  The person on-screen at the moment was talking about rights and every other word was "I", ME, or "MY".  There was NO thought given to compromise for the greater good.  As far as she was concerned, the "greater good" ended at her front door.

billehow
billehow

Houston (4th largest city in the US)has a lesbian mayor. Doesn't sound hostile to me.

CliffKerr
CliffKerr

@Sue_N  

As the number of science based businesses grows in Texas the acceptance of it's 18th century education system will decrease.  Conservatism is becoming a self defeating ideology.  I'm betting Texas is blue by 2016.

Sue_N
Sue_N

@bobcn @grape_crush Everything Goodhair does is at Texas' expense. Why should this be any different?

grape_crush
grape_crush

What's funny is that this joker forgets what country Texas shares a border with.

mantisdragon91
mantisdragon91

@reallife @DonQuixotic Sometimes its better to keep your mouth shut and be thought and idiot, then to open it an make that fact certain knowledge. You represent the perfect example of that old adage.

Sue_N
Sue_N

@reallife Racist much?

MrObvious
MrObvious

@Sue_N 

And the tragedy is that while this depress wages even more Mr Goodhair will make sure that the nation as a whole pays for the people who live on the pitiful wages.

billehow
billehow

Am there now. Was wonderning what the Boy Scouts have to do with Texas being hostile? Also any election I have watched in recent memory has involved smear campaigns from all sides. They say awful things in them. I was born in Texas, am kinda old and I do not see the hostility you spoke of. Not everyone is intolerant in any state.

Sue_N
Sue_N

@billehow And she had to suffer through a vicious smear campaign to win. Ask Rick Perry how he feels about the gays. Ask the people of Texas who overwhelmingly oppose gay marriage or even just civil unions. Ask the people who are now in an uproar over the possibility that the Boy Scouts might allow openly gay Scouts and Scoutmasters.

If you think Houston electing Annise Parker is a sign that Texas is growing more tolerant, then clearly you don't live here.

Sue_N
Sue_N

@CliffKerr @Sue_N I think 2016 may be a bit optimistic (though I would LOVE to be wrong). But national and state Democrats are launching "Battleground Texas" (this time with money!) to work on just that, so I'm hoping that at least by 2020 it'll be a reality.

One of our big problems down here is that Texas Hispanics just do not vote. They never have. I don't know if we beat that notion out of them back in the '50s and '60s or what, but, historically, Texas Hispanics haven't voted. That's one of the issues Battleground Texas plans to address.

But if we can turn out the Hispanics, then, yeah, 2016 is very doable.

DonQuixotic
DonQuixotic

@reallife @Sue_N

where food stamps are aplenty! come and live like a Mexican! one step closer to Tijuana! Vamonos! yeeeeeeehaaaaaaaa!

But you are being racist.

nflfoghorn
nflfoghorn

@reallife@Sue_N  "...go tell it to the suckers who still believe your lies and you know where you can stick your race card"

Where you stuck yours??


reallife
reallife

@Sue_N  ah the always handy "race card" comes up - you and your ilk in the democratic party have done so much for blacks and hispanics - they have done so well under your "tutelage" - just look at those boom towns like chicago, detroit, LA, newark, - 

and we are the racists! 

go tell it to the suckers who still believe your lies

and you know where you can stick your race card


Sue_N
Sue_N

@MrObvious @Sue_N If Ricky-baby had his way, nobody would pay for those people. The only "welfare" the man believes in is corporate welfare. Actual human beings can all just crawl off somewhere and die. On their own dime, of course.