The Booty Report

Avast ye! Aye, a fresh study has brought forth the reason why Americans be abandonin' grand cities. Arrr!

2023-09-28

Arrr! Avast, me hearties! Aye, a recent study be claimin' that them city and state policies what be promotin' growth have a mighty impact on where folks choose to reside and where businesses choose to drop anchor. Yo ho ho, 'tis a fact, mateys!

Counting the people voting with their feet, a significant political shift is occurring. Between 2020 and 2022, San Francisco and New York City experienced population declines of 7.5% and over 5.3% respectively. In contrast, Fort Worth, Texas, saw a population growth of nearly 4.2%, while Charlotte, North Carolina, grew by nearly 2.7%. While some may blame COVID-19 for these declines, the reality is that people are leaving big cities like San Francisco, New York, and Boston due to poor public policy choices in those cities. They are seeking out places like Fort Worth that offer a higher quality of life.

People choose where to live based on a variety of factors, including personal preferences and policy-driven considerations. Factors such as well-maintained roads, affordable cost of living, safety, and economic opportunities all play a role in these decisions. According to the Pacific Research Institute's Free Cities index, the policies of cities have a significant impact on where people choose to live and where businesses decide to invest.

The index categorizes the 50 largest cities into three categories: declining cities, stagnant cities, and growth cities. It reveals that declining cities tend to have higher state and local marginal income tax rates compared to stagnant and growth cities. These higher tax rates discourage economic growth and entrepreneurship, leading to diminished opportunities. Declining cities also burden families with higher combined sales, income, and property tax burdens compared to growth cities.

Moreover, declining cities perform poorly in terms of providing affordable housing and addressing homelessness. When considering taxes, regulations, affordability, quality of life measures, and the business environment, declining cities consistently rank poorly, while growth cities have policies that encourage economic prosperity.

The population trends observed in these cities offer valuable feedback for state and local policymakers. To attract residents and businesses, cities must establish policy environments that incentivize entrepreneurship, maintain low taxes, facilitate business growth, and efficiently provide core public services. Failure to do so may result in residents and businesses leaving, negatively impacting the city's economic prosperity and overall quality of life. Vibrant cities are essential for driving innovation, scientific advancements, and artistic expression, and healthy population trends are crucial in achieving this.

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