The blue state exodus isn’t just of people, but industry as well.
According to a new report, not oly do California and New York continue leading the nation in population loss, they’re also leading in lost business to the extent where they may unintentionally create a new "Wall Street" in the south.
The steady exodus of Wall Street banks and big tech firms from California and New York over the past several years has cost the states nearly $1 trillion apiece in managed assets. The departure of companies like Elliott Management, AllianceBernstein and Charles Schwab has drained the two states of thousands of high-paying jobs, further burdening city and state finances by sapping tax revenue.
From the start of 2020 through the end of March 2023, more than 370 investment companies – managing about $2.7 trillion in assets – moved their headquarters to a new state, according to Bloomberg. The overwhelming majority of the migration was from high-tax states in the Northeast and on the West Coast and into lower-tax states like Florida and Texas, which boast no income tax.
Florida was the top destination for companies that left New York, with the Sunshine State drawing the likes of Icahn Capital Management and AKR Investment Management. Texas, meanwhile, has shown to be the top destination for companies leaving California.
Florida and Texas are the two states that have seen the most population growth in recent years from migration. Despite the two states only making up 15% of the U.S. population, they made up 70% of the nation's population growth from July 2021-July 2022.
Matt Palumbo is the author of Fact-Checking the Fact-Checkers: How the Left Hijacked and Weaponized the Fact-Checking Industry and The Man Behind the Curtain: Inside the Secret Network of George Soros
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