“It’s Hard to Understand If You Haven’t Lived Here”

When I was recently interviewed for a Wall Street Journal article, answering questions about doing business in Texas came remarkably easy. The interview was nominally about Rick Perry, but almost all our time was spent discussing the state’s relatively healthy job scene.

When asked why Texas is special, I told Dan Henninger about a Brooklyn native and friend named John who worked for me in Dallas in the late 80’s. After having lived in half a dozen cities across the country during his career, he deliberately targeted moving to Dallas when he and his wife were ready to start a family. What inspired him was the attitude of businesspeople in Texas when they lived there once before in the early 80’s.

At that time, the energy sector was spiraling downward at a record pace, but he remembered that, instead of bemoaning their situation, the Texans around him were talking about what they were going to do next. In some cases it meant starting over in new areas of the energy sector, while others were planning how to start anew in other markets. No one spent time crying about their dire situation. The optimism he saw in Texas was like nothing he’d seen elsewhere, so he and his wife deliberately returned a few years later.

My friend Ed Trevis (also quoted in the article) provides another perspective from a non-native Texan. As the long-time CEO of a high tech embedded computing business in Silicon Valley, Ed finally became fed up with California’s overbearing tax and regulatory environment, so he surveyed locations in many other states, looking for the best place to relocate. His criteria included a strong, well-educated labor force, less government interference, and an attractive cost of doing business. Texas came out far ahead in his analysis, and the city of Cedar Park outside Austin provided the perfect place to move his business, which has thrived there since the move two-and-a-half years ago.

To be fair, there are great people everywhere, there are thriving businesses in other states, and there are spots that beat out Texas in one way or another. What is unique about Texas, though, is not only its labor force, its supportive governmental policies, and its low cost structure, but the optimism and collaborative attitude so prevalent among its people. As David Booth, who moved Dimensional Fund Advisors’s headquarters to Austin from California, said, “It’s hard to understand if you haven’t lived here.”