May 28, 2024


Red states have fared better economically than blue states after the pandemic thanks to an influx of new businesses and a growing population of remote workers from other parts of the country, economists told the Daily Caller News Foundation.

Republican-led states have added 341,000 jobs and grown economically compared to the start of the COVID-19 pandemic, while blue states still have 1.3 million jobs. according The Wall Street Journal, citing statistics from the Brookings Institution. Interstate immigration inflows have fueled disparities in economic growth and benefited red states because American workers, as well as big American businesses, are drawn to the lower cost of living, a welcoming business environment and even some social policies, economists tell the Daily Caller News Foundation.

“People are moving with their feet, and many people are attracted to less taxes, regulations and government intervention in everyday life. These things matter to people,” Vance Ginn, chief economist at the Texas Public Policy Foundation, told the Daily Caller News Foundation.

This process of commuting has been boosted by the growing prominence of telecommuting that allows people to decide where to live for “economic and lifestyle reasons” rather than being anchored by where their company is based, according to the WSJ.

Red states also fared better because their lower tax rates appeal to workers, the WSJ reported. The top 10 states for new residents in 2021 had an average maximum income tax rate of 3.8 percent, with four of them charging no income tax at all, according to the WSJ. The 10 states that lost the most residents had an average tax rate of 8.0%.

Business owners seeking a more favorable business environment likely also drove the immigration dynamic, according the American Enterprise Institute. The average rank on Forbes’ “Best States for Business” index for the 20 states with the most new arrivals last year was eight out of 50, while the average rank for the top ten states for outbound immigrants was 33 out of 50, AEI noted. .

Noting that Texas has attracted 256 new corporate headquarters under Gov. Greg Abbott’s leadership, a spokesman for the governor told DCNF that “businesses are moving to and investing in the Lone Star State at a record pace because we’ve created a framework that allows free enterprise to may the hardworking Texans prosper.”

Finally, COVID-related restrictions and school closings in particular have also encouraged many people to leave blue states, according to the WSJ. Personal trainers in Florida received inquiries and higher demand for registrations from parents “upset that their children’s schools in other states had shifted to distance learning,” the WSJ reported, and pandemic-era movers typically flock to places with fewer limitations. according to a study conducted by Vanderbilt University and the Georgia Institute of Technology.

“Blue states have forced their job creators and citizens to flee to red states due to lockdowns, high taxes, high crime caused by ‘no bail,’ among many other bad policies,” said Alfredo Ortiz, president of the Job Creators Network. DCNF.

In the twelve months between February 2021 and February 2022, 46 million people moved to a different postcode, according the New York Post.

The top three states for new arrivals were Florida, Texas and North Carolina, each of which voted for Donald Trump in both 2016 and 2020, while the top three states for immigrants were California, New York and Illinois, each of which has a Democratic-majority legislature and Democratic governors, the New York Post added. (RELATED: DeSantis boom: Florida’s economy soars as state records highest budget surplus ever)

“Republican governors have done a job, cutting taxes, putting money directly into residents’ pockets and using innovative pro-growth policies to keep their states’ economies booming,” a Republican Governors Association spokesperson told DCNF. .

The Democratic Governors Association did not respond to DCNF’s requests for comment.

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