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California’s Economic Growth is Slipping Behind Texas as the Lone Star State Draws Corporate HQs and People

Business Insider, October 16, 2024

California’s Economic Growth is Slipping Behind Texas as the Lone Star State Draws Corporate HQs and People

What happened: Texas is challenging California as a top destination for businesses, with significant corporate relocations like Tesla, Oracle and Chevron.

By the numbers: Since 2020, Texas’ GDP has grown at 3.9% annually, compared to California’s 2.3%. 

  • Texas is home to 52 Fortune 500 companies, while California leads with 55. 
  • Over 668,000 new residents moved to Texas between 2021 and 2022.

Tell me more: Texas’ fast-paced growth isn’t without its challenges. Although Texas has long promoted its lower cost of living as a draw for businesses and families alike, residents are now seeing consumer prices climb 25% over five years. 

  • Nuclear verdicts, which often exceed $10 million, are contributing to this issue by inflating the prices of goods and services and making it more expensive for business owners to operate via higher insurance costs.

TLR Thoughts: The Lone Star State’s economy has experienced impressive growth, attracting businesses and fostering innovation across industries. However, this economic success is increasingly at risk due to the rise of nuclear verdicts—excessive lawsuit payouts that inflate the cost of doing business in Texas. To maintain Texas’ competitive edge and ensure that companies continue to thrive here, meaningful legal reforms are essential.

Read the full article here.