After looking at the state unemployment numbers that came out last week, the Wall Street Journal declared in an editorial that Texas cities have become the destination for investment and entrepreneurship. The paper flatly states: "Texas is the New California."

Has the Golden State dropped so low that we have lost our reputation as the home of innovation and bright beginnings? Have entrepreneurs found a more comfortable, happier place to call home? It sure looks that way.

The Journal noted California’s huge job loss and Texas’s job gain. But more than that, the paper implied that Texas is the new destination for the entrepreneur. Texas has become the target for "high tech, venture capital, aeronautics, health care and even industrial manufacturing."

That sure used to be California.

The first thing we must do in California is to recognize the problem. But, that doesn’t appear to be happening. Yesterday, this site carried two astute pieces on California’s troubles. While Michael Bernick was pointing out our unemployment woes, and urging the next governor to focus on building private sector confidence in the state, Loren Kaye attempted to straighten out the Los Angeles Times’ skewed vision that everything is okay with business and the taxes they pay here.

The Times stated that California companies pay less in taxes than Texas, which goes against the study Kaye pointed to, the Tax Foundation’s newly issued State Business Tax Climate Report, that ranked California 49th of the 50 states.

While Texas rakes in new jobs and is christened the new home for entrepreneurship – the New California – we go round and round arguing about how bad the business environment really is.

From the new governor on through the legislature and the public and private sector, we better understand the reality of California’s deteriorating business situation if we are going to make things better in the Golden State.

We must compete with Texas in more than the World Series. And while California leads that baseball battle as this is written, Texas is clearly ahead in the battle for business and jobs.

Just look East to New California … er, Texas.