While the Lone Star State may not be perfect—many leaders would like to see improvements in its education system—it is Periclean Athens compared to California in the eyes of the 550 CEOs surveyed for Chief Executive‘s seventh annual report on the best and worst states in which to do business. It’s the seventh time in seven years running that Texas has led the states, and the seventh year California—to no one’s great surprise—ranked as worst state...If you claim to want a good economy with lots of jobs, you should probably listen when hundreds of CEOs tell you year after year after year that your government isn't business-friendly--that's if you really want a good economy with lots of jobs.
Not surprisingly, states with punitive tax and regulatory regimes are punished with lower rankings, and this can offset even positive scores on quality of living environment. While state incentives are always welcome, what CEOs often seek are areas with consistent policies and regulations that allow them to plan, as well as intangible factors such as a state’s overall attitude toward business and the work ethic of its population.
Hat tip to NewsAlert.
Update, 6/6/2011: Even World Bank Research Shows Economic Liberty Is Better than Government Dependency