July 29, 2022

In Brief: Amid Recession Fears, Economically Free States Continue to Outperform

Greater freedom results in better economic outcomes.

There is a distinct and unmistakable divide growing between the United States, and it’s all directly linked to each state’s freedom index.

Florida Gov. Ron DeSantis recently responded to questions about California Gov. Gavin Newsom’s ads airing in Florida, “It’s almost hard to drive people out of a place like California given all their natural advantages, and yet they are finding a way to do it.” He noted that California is hemorrhaging its population because of bad progressive economic policies so that they could be more free.

Florida ranks third in the nation for economic freedom, according to the Fraser Institute. And California ranks second to last.

Economist Vance Ginn and Georgia Center for Opportunity research director Erik Randolph highlight the data exposing this reality.

This month’s U.S. jobs report showed an increase of 372,000 net nonfarm jobs in June, yet it’s still under the pre-shutdown number by 524,000. The Biden administration trumpeted the good news of job growth, yet the real story is in the details. Labor participation is lagging and inflation-adjusted average hourly earnings are declining, and the bulk of the new jobs added are decisively in lower-tax, pro-growth-oriented states.

As a result, people and businesses are fleeing Democrat-run states for the greener and freer pastures of Republican-run ones.

Forty-six million Americans changed zip codes in a 12-month period ending in February 2022. That’s the most moves since 2010. According to the U.S. Census Bureau, in 2021, California, New York, and Illinois had the highest domestic migration losses, and Florida, Texas, and Arizona gained the most.

Read more at RealClearPolicy.

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