American Elephants

Capital will go where it is wanted and stay where it is well treated.
It will flee from manipulation or onerous regulation of its value
or use and no government power can restrain it for long.
Walter Wriston: The Twilight of Sovereignty

Americans move with their feet, and they also move and vote with their dollars, their work and their businesses. Between 2000 and 2010, New York has lost $45.6 billion in income to other states as workers have moved out. No other state has lost as much. It came in dead last, 50th out of 50 states.

Next in line at 49th, is California which lost $20.4 billion over the same period. 48th is Illinois, with a $20.4 billion loss, then New Jersey $15.5 billion, and completing the top five is Ohio at $14.7 billion. What do these five states have in common? High taxes and excessive regulation. This should not be a surprise to anyone.

Where did the money go? Mostly to Florida. $67.3 billion has been added to the Florida economy. Second is Arizona at $17.7 billion, then Texas is third as $17.6 billion, then North Carolina $16.2 billion and Nevada at $11.2 billion.

Public policy matters. People will go where they are well treated, and they’ll take their money with them. Those who think that if you need more money you can just raise taxes — need to recognize that there are always consequences.