Over the past few years, states in the American South have improved economically, thanks to policies such as tax cuts and improved business environments that foster prosperity and population growth, experts told the Daily Caller News Foundation. It is said that it has now surpassed the northeastern region.

Gross domestic product in Florida, Texas, Georgia, the Carolinas and Tennessee exceeded the Northeast's cumulative economy in 2020 for the first time since the data was tracked, and has continued to outpace growth rates since then. according to Based on Bureau of Economic Analysis data compiled by Bloomberg. Experts interviewed by DCNF say this growth is driven by businesses and people flocking to the region for affordability, job opportunities, less tax and regulatory relief, and relief from dense urban areas. It is said that it is brought about by (Related: Here's why the Biden administration's multibillion-dollar EV charging program was short-circuited)

“The primary driver of growth disparities between states is public policy,” EJ Antoni, a research fellow at the Heritage Foundation's Grover M. Herman Center on the Federal Budget, told DCNF. “This includes tax and regulatory policies, both of which vary widely by state. The South has, on average, a lower tax burden, a lower regulatory burden, a better business climate, and more worker freedom. Because there are more states, these states also have higher growth on average.”

In terms of tax burden in 2023, five states in the Northeast are in the top six, led by New York, Maine, Vermont, Connecticut, and New Jersey, with burden rates of 12.47%, 11.14%, and 10.28%, respectively. 9.83% and 9.76%. according to To data from WalletHub. In contrast, southern states with strong growth are well below the median in terms of tax burden, with Florida ranking 46th with a tax burden of just 6.33% and Tennessee at 6.22%, according to WalletHub. It was ranked 47th.

“We're also seeing people move from states like California, Illinois, and New York, where conditions are extremely unfavorable for sustained economic growth,” Antoni told DCNF. “During the pandemic, remote work became more mainstream, and people were no longer unable to live near corporate headquarters or central offices in places like Los Angeles, Chicago, or New York City. People chose to move to states with lower taxes. But the state also has lower crime rates and is a safer place to live.”

The South had the most population growth of all U.S. regions from July 2020 to July 2023, with an increase of more than 3.6 million people, while the West increased by 235,424 people. according to Census Bureau data analyzed by DCNF. During this period, the populations of the Northeast and Midwest decreased by 446,960 and 60,511 people, respectively.

According to the Census Bureau, the states with the largest population outflows from July 2020 to July 2023 were California, New York, and Illinois, with populations decreasing by 538,007, 533,494, and 240,668 people. did. Texas recorded the largest increase over the period, adding more than 1.2 million people, as transplants from other states such as California flooded into the region, followed by Florida with 1 million and North Carolina with 380,000. The total number of people was 1,679.

People are leaving New York and California.
People are choosing to live in Florida and Texas.
(Companies have a similar trend).

I can't say I blame them.#Saturday morning #Saturday mood pic.twitter.com/0zTsDPKdIH

— Dr. Jimmy Yam (@JimmyJoeYam) June 17, 2023

“A big draw for states like Florida, Texas and Tennessee is that they have no or reduced state income taxes, making them desirable destinations for working people,” said Peter Earle, an economist at the National Bureau of Economic Research. “There are,” he told DCNF. “The cost of living, especially the cost of shelter, in states like California and New York, especially in large urban centers like New York City and San Francisco, is at record levels. By contrast, in states like Florida and Texas, the cost of living is at record levels. , taxes, and costs associated with day-to-day expenses can be significantly lower.”

The cost of living outside the South faces pressure from regulation and tax increases, with California having the highest average housing costs at $793,600, followed by Hawaii and New York at $714,100 and $649,000, respectively. There is. according to to bank rate. Meanwhile, the median home price in states like Texas, the Carolinas, Louisiana, and Kentucky is between $240,000 and $365,000.

When it comes to total regulations, the West Coast boasts a huge burden: as of 2022, California has 403,774 regulations, Oregon has 209,207, and Washington has 200,364. according to Based on data from George Mason University's Mercatus Center. Western states such as Idaho and South Dakota had the fewest regulations, while southern states generally had around 100,000 regulations, with the exception of Texas and Florida, which were largely due to population size. there were.

Federal regulations alone will generate $1.939 trillion in additional costs to Americans in 2022, exceeding all forms of non-income taxes, and state regulations will increase by the number of states and high-cost regulations on their books. also adds to the burden.

Manufacturing has also been a strong driver of growth in the South, and the region slowly built a strong automobile industry in the 1970s and 1980s, attracting foreign companies such as Volvo, Mercedes-Benz, BMW, Toyota, and Hyundai. I have cultivated this. according to On CNN. While auto jobs are growing thanks to relaxed labor laws in the South, jobs at Ford, General Motors and Stellantis are declining in the Midwest as union demands raise operating costs.

“States like Florida and Texas typically enjoy milder, warmer weather compared to colder northeastern states,” Earl told DCNF. “For older Americans, retiring in Florida and other southern states is significantly easier than in less popular retirement destinations, with improved infrastructure and a streamlined process for retirees. .”

Cost of living generally contributes to population growth in the South, with states such as Massachusetts and California being the most expensive, with an average cost of living in excess of $50,000 per year in 2024, and New York and New Jersey at $49,000 per year. There is a narrow difference over the dollar. according to to Forbes. By comparison, southern states such as the Carolinas, Texas, Tennessee, and Georgia all have an average cost of living of less than $40,000 per year.

“In the midst of a pandemic (and recently an explosion in crime rates), many people are seeking refuge from crowded urban areas by moving to less densely populated states,” Earl told DCNF. “The pandemic has accelerated the remote work trend. This newfound flexibility has allowed many to move to states with more affordable living costs and lifestyles without changing employment. I did.”

Some southern and western states also employed Stringent restrictions on individuals and businesses during the COVID-19 pandemic will be significantly eased, leading to a more economically prosperous environment and faster economic recovery. according to To Politico.

“The misguided public policy of government-imposed lockdowns has also made life intolerable for many people in more left-wing states, which also tend to have higher taxes and impose more burdensome regulations. Yes,” Antoni told DCNF.

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