Perry Seeks California Business Gold Mine

States often send business recruiters to California promising lower tax rates and lax regulations. But when Texans want to woo a business they send Governor Rick Perry.

In the ad, Perry said, "Building a business is tough, but I hear building a business in California is next to impossible."

The ad is part of the organization Texas Wide Open for Business.  The ad will run in major cities such as Los Angeles, San Francisco, Sacramento, the Inland Empire and San Diego.

California is  the eighth largest economy in the world, and a hub for venture capitalists and tech startups. That's why other states are seeing California as an attractive target for businesses to steal.

Since the mortgage meltdown that crippled the states economy and the recent sales tax hike from Proposition 30, Texas and many other states have sent full-time recruiters to poach businesses out of the Golden State.

Dan Mitchell is professor emeritus at UCLA's Anderson School of Business and the Luskin School of Public Affairs  He said Texas may have less business regulations than other states but Californians shouldn't be too worried about jobs moving elsewhere.

"I'm sure you'll hear people pick up on the theme of this ad and say 'See Texas is going to steal all the jobs, but in fact when you look at the numbers, California's employment has been growing," Mitchell said.

According to Mitchell, there are a variety of reasons why a business chooses one state over another, but because California is so big, other states see it as a business gold mine.