In the United States, a common saying has often been quipped that people “move with their feet and speak with their wallets”. Indeed, this is often the case, but this also begs the question; are there times in which individuals make financial statements with their physical decisions in terms of movement as well? In America in recent years, this most certainly has been the case. In a recent study of migration patterns from state to state domestically, a clear pattern has emerged; Americans everywhere living in high cost of living, high-taxed states (often controlled by Democratic politicians) have been overwhelming fleeing to low-cost of living, low-taxed states (often controlled by Republicans). This is unsurprising; as many people begin to reach retirement age or many young individuals decide to begin their careers and independent adult lives, people generally wish to begin or end their careers and lives in areas where they can stretch their hard-earned money the furthest.
This is true during times of economic hardship. Over the last three years, rampant inflation has crushed the American working class. In recent reports, it is estimated that 60% of people are living paycheck to paycheck. Consumer credit card debt has skyrocketed to all-time highs domestically, and more and more people continue to struggle fiscally in many regards as the cost of living and of basic necessities have skyrocketed. What’s worse; home ownership has been deemed nearly impossible for Americans making near the median household income of around $70,000 annually.
Many states with high-costs of living and high-taxes have experienced precipitous population declines. Among two of the highest population loss-states include California and New York. Both are run by progressive Democratic politicians who have gutted the economic climate within their own states and made these places undesirable for entrepreneurs and middle-class citizens who struggle to afford the costs of living. California has reached a slight increase though, as illegal migrants flood the nation.
