Scott Bessent highlighted that the economic model backed by Trump drives investments, jobs, and growth in contrast to the Californian decline
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The U.S. Treasury Secretary, Scott Bessent, highlighted this Friday the stark contrast between Texas and California, presenting both states as examples of two opposing economic models and noting that Texas's success reflects the positive impact of the policies promoted by the administration of President Donald Trump.
During a meeting held at the Petroleum Club in Houston, Bessent stated that California represents the consequences of years of poor government decisions, while Texas has become a benchmark for economic growth, innovation, and prosperity.
''In California, I saw firsthand what a failed government looks like: a tax system hostile to ambition, a regulatory apparatus that stifles private initiative, and an economic climate indifferent to the consequences of its policies,'' the official stated.
The statements come in a context of increasing business migration from Californiato states with lower taxes and more flexible regulations. In recent years, major U.S. corporations have relocated their headquarters or significantly expanded their operations in Texas, attracted by an environment considered more favorable for investment and job creation.
The U.S. Treasury Secretary highlighted the Texas economic model and compared it to the poor decisions made by the Democratic government of California
Among the companies that left California are giants like Chevron, Tesla, Charles Schwab, and Hewlett Packard Enterprise. These companies have indicated on various occasions that the high tax burden, operational costs, and excessive regulation influenced their relocation decisions.
According to data from the Internal Revenue Service (IRS), California also continues to lose high-income taxpayers, a trend that concerns state authorities due to its potential impact on revenue and public finances.
Bessent assured that the difference with Texas is becoming increasingly evident. ''Here in Texas, the contrast is so strong that it seems like the story of two completely different states,'' he noted.
The secretary emphasized that the so-called ''Lone Star State'' has managed to attract thousands of families and businesses thanks to policies focused on economic freedom, lower taxes, and more limited regulation. In his view, these factors have created the necessary conditions for sustained growth and the generation of opportunities.
Important companies like Chevron decided to leave California due to the high tax costs they faced
Another central point of his speech was the importance of energy within the national economic strategy promoted by Trump. Bessent argued that energy security is a fundamental element for maintaining U.S. competitiveness in strategic sectors such as artificial intelligence, advanced manufacturing, and technology.
''The race for artificial intelligence can be accelerated by the quality of our software, but it will be won by those who have abundant energy,'' he stated. ''Energy abundance not only strengthens the economy; it also guarantees national security.''
In this regard, he highlighted Texas's role as the leader in U.S. energy production. The state has significantly increased its capacity to meet growing demand, partly driven by the expansion of data centers and new technological investments.
Texas has reached record levels of crude oil production and low-emission electricity generation, in addition to recently surpassing California in installed solar capacity at the utility scale. For the Trump administration, these advances demonstrate that economic growth and energy expansion can develop simultaneously when there are adequate incentives for private investment.
''Texas has become the new center of gravity for the United States because it fosters the necessary conditions for families and businesses to thrive,'' Bessent stated.
The measures of President Donald Trump in the energy sector have been one of the fundamental aspects for the growth of Texas
The figures support much of this argument. A report from CBRE revealed that, of the 725 companies that relocated their corporate headquarters between 2018 and 2025, about 230 chose the metropolitan areas of Houston, Dallas, and Austin as their destination. This flow of investments has contributed to strengthening employment, economic activity, and the state's population growth.
Moreover, IRS migration data shows that Texas recorded a net increase of approximately 56,000 taxpayers between 2022 and 2023, consolidating a trend that has been ongoing for several years.
For supporters of the Trump administration, these figures demonstrate that tax reduction policies, promotion of energy production, and support for business activity are yielding concrete results. While some states continue to face the exit of companies and taxpayers, Texas emerges as one of the main beneficiaries of an economic model based on competitiveness, private investment, and productive expansion, reinforcing its position as one of the fundamental engines of the U.S. economy.
The city of Dallas has been one of the main recipients of outbound investment from the state of California
