Economist Urges Blue States to 'Act Together and Stop Avoiding Reality' After 5 Million People Fled in the Last Decade

A ton of buzz has surrounded celebs like Joe Rogan ditching California lately. In response, an economist zoomed out to reveal a wider and alarming trend.

Blue Exodus

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During a January interview on Fox Business, economist Stephen Moore shared that over the past decade, a whopping five million individuals have fled ‘blue states’ such as Illinois, New York, California, and New Jersey.

This is one of the biggest mass migrations in American history,” he observed.

Red State Boom

On the flip side, Moore notes that the ‘red states’ have welcomed quite a crowd.

“If you look at, for example, the states that gained the most population over the last 10 years, you’re talking about obviously, Florida, Texas, South Carolina, North Carolina, Georgia, those states, the Southeast now has a larger GDP — total combined economic output — than the Northeast,” he explained. “That’s the first time that’s ever happened in American history.”

His remark might be nodding to a Bloomberg piece that stirred up discussions on X, previously known as Twitter.

The Southern Surge

The latest stats underscore a clear trend. According to the Census Bureau, the South’s population swelled by over 1.4 million residents in 2023, with a whopping 706,266 of those coming from net domestic migration.

On the other hand, the Northeast saw its numbers dip by 43,330.

The Tax Factor

While it’s hard to pinpoint exactly why, Moore has a hunch that taxes play a big role. He points to the financial benefit of lower taxes as a key factor in choosing a place to live and work.

Moore uses California’s recent tax increase as a prime example, noting the state’s top income tax rate has climbed to 14.4% on income over $1 million.

Zero Tax States

“You can move to Florida and Texas and pay zero! This is a no brainer,” Moore said. “I wish these blue states would get their act together and stop avoiding reality, which is taxes do matter, and they matter a lot.”

The Lure of No Income Tax

Texas and Florida stand out for not imposing state individual income tax, a feature that likely turns heads among the wealthy and retirees aiming to safeguard their assets. Instead of income tax, these states bank on sales and property taxes for their revenue streams.

Right-to-Work States

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Moore also points to a broader shift, noting that it’s not just individuals moving but also businesses and capital. He highlights the impact of right-to-work laws, which ensure workers aren’t forced to join or fund unions as part of their job.

A Pro-business Stance

This policy contrasts sharply with states that mandate union membership or dues for employment, marking a distinct pro-business stance.

Union Choices and Business Booms

Moore points out that the rapidly growing states, such as Florida, Texas, South Carolina, North Carolina, and Georgia, are all right-to-work states. This setup means workers have the choice to join a union or not, without being forced. These states also boast of lighter regulations and more business-friendly policies.

He contrasts these with states like California, New York, and Illinois, which don’t follow right-to-work laws.

Losing More Than Just People

Moore warns that as blue states keep targeting the wealthy with higher taxes, they’re not just losing residents but also the businesses and jobs those people take with them.

Controversial Views

Earlier this year, Chamath Palihapitiya, the controversial CEO of Social Capital known for his bold market moves and once hailed as the ‘SPAC King,’ found himself in the spotlight once more.

Tweet Sparks Debate

His controversial remarks on China’s human rights and lawsuits over investor misinformation had already made waves. Then, in June 2023, he threw another curveball by tweeting a Bloomberg article’s screenshot showing that six southern states had surpassed the northeast’s economic output for the first time.

‘Go Woke, Go Broke’

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His caption, ‘Go woke, go broke,’ implied that the cultural and economic policies of the Northeast were to blame for this shift, sparking a heated debate among many, including Mark Cuban.

$100 Billion in Net Income

An analysis by Bloomberg, using IRS figures, highlights a notable shift in wealth to the southern United States. Florida, Texas, Georgia, and the Carolinas, along with Tennessee, collectively welcomed $100 billion more in net income in 2020 and 2021.

The $60 Billion Exodus

In stark contrast, the traditional economic powerhouses of Washington, New York, and Boston experienced a $60 billion drain in income during the same timeframe.