In recent years, many people have been leaving blue states to reside in red states within the United States of America. Between 2010 and 2020, the fastest-growing states were largely Republican-governed, including Texas, Georgia, Florida, Tennessee, and South Carolina. The population migratory trend accelerated further during the COVID-19 pandemic. This raises a pertinent question – if Republican policies are harmful, why are people migrating away from blue states governed by Democrats?
The answer is straightforward – red states are more pro-business than blue states are. A 2021 study by the American Enterprise Institute shows that Americans are moving to economically vibrant red states with lower costs, increasingly conservative fiscal policies, and better job opportunities. The states that saw the biggest population gains have an average maximum income tax of 3.8%, which is significantly lower than the 8% average rate of the 10 states with the biggest population loss.
Moreover, the population-gaining states have fewer restrictions on home construction, and this contributes to lower housing prices. The median home price in the states with the most significant population gain is an average of 23% less than that of the states with the most significant population loss.
However, even within Republican-governed red states, the dynamism is mostly observed within the blue cities. For instance, Austin, Houston, and Dallas-Fort Worth accounted for 71% of the jobs created in Texas in 2019. Cities in the South-western region of the country, where Democrats are progressively growing stronger, enjoy rapid employment growth. Austin, Raleigh, Durham, Miami, Nashville, Tampa, and Phoenix are experiencing this kind of growth because they are functioning under a red-blue mash-up.
Although Republicans at the state level provide the general business climate, Democrats at the local level influence schools, provide social services, and create a civic atmosphere that welcomes diversity and attracts highly-educated workers. Thus, the policymaking approach that promotes a dynamic and cosmopolitan society is a blend of conservative policies on business matters and liberal-leaning policies on education, immigration, and workforce development. Nevertheless, the Republican party has become increasingly populist, lacking interest in nurturing highly-educated boomtowns. Democrats on the coasts have also shown little willingness to adapt to this mix.
As the Democratic Party becomes more the party of the college-educated voter and Republicans become more the party of white working-class voters, Democratic prospects in the Upper Midwest reduce. However, their prospects in the Southwestern growth areas improve. It is quite feasible that a different form of Democrat could emerge from these regions. Thus, we now know the policymaking blend that creates a dynamic society and encourages people to migrate. We only need to establish a political party to implement and promote it.
