State wealth is the subject of the second part of the Wealth of States series. Part two provides more insight on the reasons why some US citizens are fleeing their home states, causing these states to lose both much needed revenue and residents.
Joining host Dennis McCuistion to discuss state wealth are:
- Stephen Moore: Chief Economist, Heritage Foundation, Co-author: An Inquiry into the Nature and Causes of the Wealth of States
- J. Matthew Wilson, PhD: Associate Professor of Political Science, Dedman College of Humanities and Science, Southern Methodist University
Left to Right: J. Matthew Wilson and Stephen Moore
There are mass exoduses of US citizens and businesses fleeing states where they are being choked by income taxes and laws that make it difficult to work and operate their businesses. One of the reasons are the policies politicians are implementing that prevent, not encourage, growth. State income tax rates are a big factor stimulating moves from one state to another. Presently there are 9 states which have no personal income tax and they create 3 times more jobs. Another factor: right to work laws – so individuals/ businesses are not forced to join unions. Still another issue is energy- a huge and growing factor in the wealth of states and a politically contentious one.
With the issue of state wealth, a balance is needed, yet are we really willing to tolerate a little more risk to gain a lot economically? Perhaps what is needed is a cost-benefit analysis that looks at facts, not scare factors. For the first time since the Civil War we are also growing more geographically polarized-,with red states getting redder and blue states, bluer and actual secession movements within some states. More and more, people are opposing what is proposed by the other side- regardless.
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When looking at state wealth and the reasons certain states are flourishing, census studies are one place to look. Presently census studies show the top 20 cities to move to are: San Antonio, Houston, Pasadena, TX, Laredo, TX, Corpus Christie, TX, Brownsville TX, Boise, Idaho, Austin, TX, Tallahassee, FL, Pocatello, Idaho, Mobile, AL, Ft. Worth, TX, Dallas, Portland, OR, Plano, TX, Garland, TX, St. Petersburg, FL., Irving, TX, Birmingham, AL, Vancouver, WA. An interesting dichotomy is that it appears that in liberal states- the rich are getting richer and the poor, more poor. Another irony is that people come to red states, because taxes are lower as is the cost of living, then they attempt to changes the policies to reflect what they were in the state they vacated!
Are there solutions? Or are some states destined to become “ghost towns”? Tune in and be challenged by what our guests propose- as we continue talking about things that matter with people who care.
Thanks for joining us to talk about state wealth.
Niki N. McCuistion
Consultant and speaker:
On Engaging Employees, Organizational Culture, Governance and Strategic Planning