There’s a lot of talk these days about how Texas is the new California. There’s a great deal of truth to this assertion. Just check the migration route of people and businesses leaving Los Angeles and the Bay Area for Houston, Dallas, and Austin. But you need to take that concept with a grain of salt. It’s a short-term phenomenon.

What made California so great in the twentieth century? Land was abundant, cheap, and easily developed right near the ocean where people really wanted to be. Nature was always close at hand from the beach to the mountains. Productive farmland was created up and down the Central Valley with massive irrigation projects that made the desert bloom. California was a major oil and natural gas producer. Industry and innovation thrived as talented people poured in from across the country and around the world, each adding to the dynamism of the economy and culture. Massive government investments were made in horizontal infrastructure everywhere. Taxes were low. Regulations were light. Public education was first in the nation. The middle class expanded outward in every direction.

Then… things changed. Drought pitted farmers against cities and industry against wildlife. Oil and gas production peaked and declined. The easily developed land in desirable places filled up. Traffic congestion increased. Pollution got out of hand. Prices rose dramatically. Each newly arrived resident looked a lot like a burden to be avoided. Each new home and car was a problem to be restricted. Tax revolts ensued. Schools were starved of funding and deteriorated. California loaded up on regulations and a no-growth agenda.