A significant shift has been noticed with celebrities like Joe Rogan leaving California, but Stephen Moore, an economist, suggests this is part of a larger trend.
Blue States Exodus
Speaking to Fox Business, Moore said that over the last decade, around five million people have relocated from ‘blue states’ such as Illinois, New York, California, and New Jersey.
A Historic First?
The relocation trend has been so significant that economist Stephen Moore described it as ‘one of the biggest mass migrations in American history.’
Red States’ Boom
On the flip side, ‘red states’ have experienced a population boom. Moore noted that states like Florida, Texas, South Carolina, North Carolina, and Georgia have seen significant population growth.
Historic GDP Shift
This surge has led to the Southeast’s GDP surpassing that of the Northeast for the first time in U.S. history. Moore’s comments may be echoing a Bloomberg story that stirred up discussions on X, formerly known as Twitter.
The South’s Population Surge
The latest Census Bureau report reveals a distinct trend: the South’s population surged by over 1.4 million in 2023, with net domestic migration contributing 706,266 people.
The Decline of the Northeast
In contrast, the Northeast saw a decline of 43,330 residents. While the exact reasons for this migration pattern are uncertain, economist Stephen Moore suggests two main drivers. The first is taxes. Moore believes lower tax burdens are a key factor influencing where people choose to live and work.
California’s Tax Hike
Moore highlights California’s recent tax hike, with the top income tax rate now at 14.4% for incomes over $1 million, as a notable example. He explained, “You can move to Florida and Texas and pay zero! This is a no brainer. I wish these blue states would get their act together and stop avoiding reality, which is taxes do matter, and they matter a lot.” However, a 2023 study by Fortune found that the effective state and local tax rate for the median US household in California is about 8.97%, but in Texas, it is 12.73%.
Zero Income Tax
Texas and Florida stand out for not imposing any state individual income tax, a feature that’s particularly enticing to wealthy individuals and retirees looking to preserve their assets.
Preserving Wealth
This tax benefit is likely a major attraction for those seeking financial efficiency. To balance their budgets, these states instead rely on alternative sources of revenue like sales and property taxes.
Pro-Business States
The second factor driving migration, according to Moore, is the pro-business climate in certain states. He points out that it’s not just individuals relocating, but also a significant shift in business activity and capital investment.
Right-to-Work States
Moore highlights right-to-work laws as a key element of this business-friendly environment. These laws ensure that employees are not forced to join a union or pay union dues as a condition of employment, offering workers the choice to support a union or not.
Do Union Rules Drive People Away?
This is in stark contrast to states with union security agreements, where joining the union or paying dues might be mandatory in unionized workplaces. “These states that are growing rapidly are right-to-work states,” Moore suggested.
The Winning Formula?
He continued, “They have unions, but you have, as a worker, the opportunity to join the union or not join the union — can’t be forced to. They have lighter regulation, better policies across the board. A pro-business atmosphere.”
Labor Laws on Migration
The states highlighted by Moore, including Florida, Texas, and the Carolinas, are all aligned with right-to-work laws, unlike California, New York, and Illinois.
Taxes to Blame?
Moore warns that the continued approach of ‘blue states’ to heavily tax the wealthy could lead to an exodus, with people not only moving away but also relocating their jobs and businesses.
DeSantis on Migration
Florida Governor Ron DeSantis offers a different perspective on the migration trend. At a Utah GOP meeting, DeSantis suggested the movement is due to Florida’s more relaxed approach to pandemic lockdowns, unlike ‘blue states’ such as New York and California, which implemented stricter measures.
A Pandemic Response?
He highlighted that while these states closed businesses and schools, Florida chose not to adhere to Dr. Anthony Fauci’s recommendations. DeSantis praised Florida for standing as a ‘refuge of sanity’ and avoiding what he termed a ‘Fauci-dystopia’ with destroyed livelihoods and restricted freedoms.
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