Wealth is Moving From Blue States to Red States

According to figures from MyEListing.com, an online real estate website, California and New York lost $343 million and $299 million in 2021, respectively, owing to a rise in migration outflows.

MyEListing.com used data from the IRS. 

The main states who have benefited from the outflow are Florida and Texas, which gained $12.4 billion and $10.7 billion, respectively.

“Despite its numerous attractions, from the booming tech industry and world-class universities to beautiful landscapes and cultural richness, California’s high personal income tax rates seem discouraging for many high-wealth individuals. This, coupled with the state’s high cost of living, will likely fuel a wealth migration out of California,” MyEListing noted in its report. 

Such trends are the norm across the US as many residents of blue states flee for greener pastures in red states. This is the result of bad public policies that have turned blue jurisdictions economically stagnant, crime-infested, and expensive areas to live in. As a result, they will head towards more hospitable red states with a higher quality of life and better economic prospects.

That’s the beauty of American federalism. When one jurisdiction goes awry in terms of public policy, other areas will rise up to compete and provide better living conditions. This keeps otherwise predatory institutions such as blue states in check and forces them to compete to keep their most talented citizens. 

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