A former California state Assembly member wrote a fascinating op-ed today comparing the ability of Texas and California to fight poverty.
Despite California's generous welfare state, Texas' poverty rates are actually much lower.
The reason?
Less government interference.
Chuck DeVore explains:
California’s poverty rate is 20.4 percent and the Texas rate is only 14.7 percent, based on the Supplemental Poverty Measure, which accounts for the regional cost of living, out-of-pocket medical expenses and other items.
Three big factors are responsible for California having more poor people and Texas having fewer as a portion of their state populations:
- California has high state and local tax rates, while the rates in Texas are low.
- California has a generous welfare system that acts as a disincentive to work, while Texas incentivizes people to get jobs.
- And California’s many burdensome regulations raise the cost of living and act as roadblocks to development, while inflating housing costs. So a family needs to have a higher income to get out of poverty in California than it needs in Texas.
DeVore goes on to explain each point in detail, but here's the bottom line: in Texas, people are allowed to keep their money and invest it in a home or a business without having to worry about over-regulation. The result is that fewer people struggle with poverty, and those who do have hope for a better future.
The feds can take a lesson from Texas's success. If they want to encourage prosperity in the United States, they must allow the American people to govern themselves. They must lower taxes, cut regulation, and limit federal involvement in the daily lives of their citizens.
If that sounds unlikely, there is hope. An Article V Convention of States is called and controlled by the people and the states. It has the power to propose constitutional amendments that decentralize power from D.C. and return it to the states. Click here for more information.
