
Red states have fared better economically than blue states post-pandemic thanks to an influx of new businesses and growing populations of remote workers from other parts of the country, economists told the Daily Caller News Foundation.
Republican-led states have added 341,000 jobs and grown economically compared to the start of the COVID-19 pandemic, while blue states are still short 1.3 million jobs, according to The Wall Street Journal, citing statistics from the Brookings Institution. Interstate migration inflows have fueled disparities in economic growth and benefited red states because American workers, as well as major American businesses, are attracted to lower costs of living, a welcoming business environment and even certain social policies, economists tell the Daily Caller News Foundation.
This process of moving with one’s feet has been reinforced by the increasing prominence of remote work allowing people to decide where to live for “financial and lifestyle reasons” rather than being anchored by where their company is headquartered, according to the WSJ.
Red states have also fared better because their lower tax rates appeal to workers, the WSJ reported. The top 10 states for new residents in 2021 averaged a maximum income-tax rate of 3.8%, with four of them charging no income tax at all, according to the WSJ. The 10 states that lost the most residents had an average tax rate of 8.0%