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ORIGINAL: willbeurdaddy

Funny this:

Little wonder then that while Texas gained over 848,000 net new residents in the last 10 years, according to the Census Bureau, California lost 1.5 million. New York State’s net loss exceeded 1.6 million - the highest of any state. High-tax, big- government New Jersey ranked fourth, with a net loss of almost 460,000, enough to drop it from 10th to 11th place in population.

“The New York state legislature is the most dysfunctional in the land and one of the reasons why New York is the worst,” one exasperated New York City business leader volunteered. The political elites in the states that dismiss out-migration trends overlook the radical demographic adjustment underway. As higher-income earners leave, they are more often replaced by those with lower incomes and lower skills, many needing public assistance. Gone too are the entrepreneurs and risk-takers, off seeking regions where their job creating abilities are rewarded.



Hint: Internet startups wont pay taxes for years, and being close to venture capitalists is a competitive advantage.

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ORIGINAL: AnimusRex

There has been a lot of noise made recently about how cities and states absolutely must cut taxes and regulation and become more business friendly so as to attract industry. The theory goes that wealthy people and businesses will flee high tax areas for low tax areas.

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ORIGINAL: EternalHoH
Wealthy people are indeed fleeing, but not from one state to another to run a business more profitably.  They are fleeing business ownership altogether, because shortcuts to wealth have been recently created.

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Easier ways to build wealth have been invented in the past 20 years.

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ORIGINAL: willbeurdaddy

Funny this:

Little wonder then that while Texas gained over 848,000 net new residents in the last 10 years, according to the Census Bureau, California lost 1.5 million. New York State’s net loss exceeded 1.6 million - the highest of any state. High-tax, big- government New Jersey ranked fourth, with a net loss of almost 460,000, enough to drop it from 10th to 11th place in population.

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If economic productivity – created by low regulations or anything else – was causing the growth of Texas, Arizona and Georgia, then these places should have high per capita productivity and wages. Yet per capita state product in Arizona in 2009 was $35,300, 16 percent less than the national average. Per capita state products was $36,700 in Georgia and $42,500 in Texas.

These figures are far below per capita state products in slow-growing places like Connecticut ($58,500), Massachusetts ($50,600) and New York ($50,200). According to the Census Bureau’s 2009 American Community Survey, median family incomes were $56,200, $60,800 and $56,600 in Georgia, Nevada and Texas, but $83,000, $81,000 and $66,900 in Connecticut, Massachusetts and New York.

Low incomes and productivity in the growing states of the Sun Belt strongly suggest that their expansion is not driven by outsize economic success.

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Housing prices in Texas and Georgia are neither high nor rising. The median sales price for a home in greater Houston is $159,000 and in Atlanta $113,000. The comparable figures for New York and Boston are $470,000 and $367,000, respectively.

Housing in the growth regions is inexpensive, both in absolute terms and relative to those areas’ incomes...

But those low housing prices actually provide a vital clue about why Arizona, Georgia and Texas are growing. These states have built hundreds of thousands of homes despite having low housing prices. Connecticut, Massachusetts and New York have high prices but far less new construction.

The Sun Belt pattern of low prices and abundant construction can mean only one thing: an abundant and elastic supply of housing. Demand for new housing, due to either sunshine or economic success, isn’t driving Sun Belt growth – low prices belie that explanation.

Rather, in the growing regions, even modest demand creates far more new construction, and population growth, because supply responds so enthusiastically.

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A rich body of research shows that regulation, which is intense in the Northeast and California but lax in the Sun Belt, explains why housing is supplied so readily down South. The future shape of America is being driven not by quality of life or economic success but by the obscure rules regulating local land use.

In a sense, the anti-regulation crowd is right that the laissez-faire attitude of the South and West explains their recent growth. But the usual argument focuses on the wrong regulations.

Housing regulations, more than those that bind standard businesses, explain the Sun Belt’s population growth. If New York and Massachusetts want to stop losing Congressional seats, then they must revisit the rules that make it so difficult to build. High prices show that the demand would be there if the supply is unleashed.

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ORIGINAL: servantforuse

The city of New York did a great job of plowing the streets this last week. 4 days later and it's still a mess. Where did those tax dollars go?

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ORIGINAL: willbeurdaddy

If $12 million in taxes didnt influence LeBron, he needs a new business manager.