The American economy has been strong under President Trump. However, Trump isn’t the only chief executive responsible for economic growth in the states.
Republican governors are presiding over strong economies in their individual states as well, and there is hard data to back it up. It’s amazing what happens to an economy when taxes are lower and businesses are allowed to operate more freely.
Who would have thought?
Writing for The Hill, Kristen Tate wrote that “there is a strong statistical case that electing a Republican governor—even without a matching GOP statehouse—plays a significant role in states’ economic successes. Look no further than the last election cycle paired with economic statistics, and this trend soon becomes clear.”
“State unemployment rates and GDP growth must be viewed relative to national averages. The average U.S. unemployment rate was 3.9 percent in 2018 and 3.7 percent in 2019. Strong employment growth at the state level is directly correlated with governorship. Among the 20 states with the lowest unemployment rates (three are tied for 20th, so there are 23 states ranking here), 17 had Republican governors prior to 2018.”
States run by Democratic governors saw the largest increase in unemployment rates last year. Tate wrote, “In states whose unemployment rates increased more than statistical noise (more than one-tenth of a percent), five of the eight have Democratic governors.”
Republican states with growth rates over 4% were all controlled by Republicans and one independent. Tate wrote, “Among the four states that had growth above 4 percent, Texas (leading with 4.7 percent), New Mexico and Wyoming had GOP executives; Alaska was run by an independent. In fact, these states’ growth represents almost 10 percent of all economic growth in the nation during this period.”
States like California and New York are seeing businesses flee in large numbers, many heading for states with lower taxes and less restrictive regulations, most notably Florida and Texas.
California business owners are moving to the Lone Star State in massive numbers…because who doesn’t prefer wide-open spaces and low costs of living over state income taxes and rampant drug use?
Additionally, when these employers relocate, many of their employees follow them out of the Golden State, leading to an even bigger influx of people across state borders.
Dallas and Austin have seen the biggest influx of Californians. From 2012 to 2016, 8,300 Californians moved to the Dallas Fort Worth region alone.
Many Silicon Valley jobs are moving to Austin as well. The Dallas News reported, “Silicon Valley-based Apple, which has thousands of employees in Austin, is building an additional $1 billion campus with capacity for up to 15,000 jobs. Austin is already the largest home for Apple employees after the iPhone-maker’s Cupertino, California headquarters. Software giant Oracle and Google have a large presence in Austin, too.”
Dallas has welcomed companies such as Toyota, McKesson (the nation’s largest pharmaceutical distributor), Jamba Juice, Pegasus Foods, Rockwall, and Kubota tractor.
Similarly, tax rates in New York and other northern states are outrageous, and many businesses have had enough. From New York in particular, business owners and their employees are moving to the Sunshine State.
Florida has a generous tax code, there is no state income tax, and the state has a small corporate tax rate as well. The weather and beaches are also a huge appeal. Who wouldn’t want to move to Florida with those benefits?
Fox Business reported, “According to a study from LendingTree, which analyzed IRS data from 2016, Florida is the number one largest beneficiary from relocations out of all 50 states—by a landslide.”
The Sunshine State drew in a net influx of about $17.7 billion in adjusted gross income (AGI)- most of which (72 percent) came from those aged 55 and older. It is consistently one of the most popular destinations for retirees due to affordability and low taxes.
Florida’s $17.7 billion in net AGI dwarfs the remaining 19 states that saw a positive net influx of income—which combined for a total of $19.4 billion.”
Surprise, surprise, both states have Republican governors—Ron DeSantis and Greg Abbott—and both have approval ratings around 60%. In fact, all 10 of the most popular governors in America are Republican.
Moral of the story: you want a job, go to a state where a Republican is governor.