The largest state in the “Lower 48” contiguous United States and the second most populous (behind only California), Texas is located in the southern United States and is at times considered a country apart.
Many of the resources that have made the United States the richest country in the world come from Texas, mainly from agricultural and industrial production. Among the states it has the second largest economy in the country, and a very diversified one at that, with emphasis on the oil and aerospace industries.
According to the US Bureau of Economic Analysis, during the third quarter of 2021, the gross domestic product (GDP) increased an average of 2.3% in 36 US states, but Texas hit a considerably higher 3.7% growth.
The “new California”
Specialists at the Hoover Institution, a think tank based at Stanford University, stated in a 2021 article that Texas receives seven times more investment projects than California, long considered the investment capital of the United States.
In 2020, large companies, such as Oracle, Tesla Motors, the financial giant Charles Schwab Corporation, and Hewlett-Packard Enterprise (an offshoot of HP, Inc.) as well as influential individuals like Elon Musk and podcaster Joe Rogan left California and decamped to Texas, driven by the flexibility of remote work during the pandemic and the lower cost of doing business in Texas, as well as its lack of a state income tax (for individuals, not companies). This dispersal received the name the “California exodus.”
Texas has become a favorite destination for business and people heading out of California. For example, the opening of a big Tesla factory in Austin in 2021 has drawn attention to Texas as an attractive state for big companies. The brand moved from Palo Alto, in California’s Silicon Valley, to Texas, with the primary justification that the state offers very advantageous tax rates and essential subsidies to companies that base and generate jobs in Texas.
According to the 2021 CNBC Best States for Business ranking, Texas is the fourth-best state for business. The city of Dallas is considered the ninth largest economy in the world—greater than most countries. Austin is a major technology hub (not to mention a major cultural hub for young people), and Houston is a platform for aerospace and biomedical research.
Moreover, Texas offers an excellent infrastructure, solid stability, and an ideal quality of life, resulting in a perfect combination of education, agriculture, space, and technology—in other words, everything families, businesses, and individuals need for success.