'One of the biggest mass migrations in American history': Economist says 5M people have fled 'blue states' in the last decade, wishes these places would 'stop avoiding reality.' Here’s why

Jing Pan
'One of the biggest mass migrations in American history': Economist says 5M people have fled 'blue states' in the last decade, wishes these places would 'stop avoiding reality.' Here’s why
'One of the biggest mass migrations in American history': Economist says 5M people have fled 'blue states' in the last decade, wishes these places would 'stop avoiding reality.' Here’s why

A lot has been reported about celebrities like Joe Rogan moving out of California in recent years. However, economist Stephen Moore says there's a much broader trend here.

During a recent interview with Fox Business, Moore claimed that over the last 10 years, about five million people have left the so-called "blue states" Illinois, New York, California and New Jersey.

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

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Meanwhile, the so-called “red states” have seen an influx, per Moore.

“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,” Moore pointed out. “That's the first time that's ever happened in American history.” He's possibly referring to a Bloomberg story which sparked debate on X, formerly known as Twitter.

The trend is clear in recent numbers. According to a recent report from the Census Bureau, the population in the South grew by over 1.4 million residents in 2023, with 706,266 people added via net domestic migration alone. Meanwhile, the Northeast’s population declined by 43,330.

Of course, the reason behind this domestic migration pattern isn’t known for sure, but Moore theorized that two factors are driving it.

Taxes

The first factor, according to the policy analyst, is taxes. He believes the financial appeal of lower tax burdens play a significant role in people’s decisions about where to live and work.

Moore cited California as a prime example.

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“California just adopted a new tax increase,” he said, highlighting that the state’s top income tax rate has risen to 14.4%. This new 14.4% state tax rate in California applies to income exceeding $1 million.

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

Indeed, both Texas and Florida have no state individual income tax. This aspect may be especially attractive to high earners and retirees seeking to protect their wealth. Such states rely on other taxes for revenue, like sales and property.

Pro-business atmosphere

Moore said that the departure from blue states involves not just people but also “a migration of business activity and capital investment.”

He specifically mentioned right-to-work laws, which govern the relationship between labor unions and workers. These laws stipulate that employees cannot be compelled to join a union or pay union dues as a condition of their employment. Essentially, they provide workers with the choice of whether or not to join or financially support a union.

This contrasts with union security agreements in other states, where employees in unionized workplaces might be required to join the union or pay union dues to cover collective bargaining costs.

“These states that are growing rapidly are right-to-work states. 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,” Moore stated. “They have lighter regulation, better policies across the board. A pro-business atmosphere.”

The states Moore referred to earlier — Florida, Texas, South Carolina, North Carolina, Georgia — are all right-to-work states. In contrast, places like California, New York, and Illinois do not have right-to-work laws in place.

Moore cautioned that as the blue states continue to “soak the rich,” they would “lead more people to leave” and “they’re taking their jobs with them.”

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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