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In real estate the three rules of buying a home are location, location, location. This explains the seismic change in America in terms of where families are choosing to live, where businesses are choosing to locate, and where investors are choosing to invest. America is experiencing the most profound geographical shift in economic and political center of gravity in at least half a century. Why? Because the red (conservative) states are getting redder and the blue (liberal) states are getting bluer. Red states like Texas, Florida, Arizona and Utah are cutting tax rates, slashing regulations, reducing debt, promoting energy development, allowing labor the right to work, while the blue states (New Jersey, New York, California, and Illinois) are doing the opposite. The results are stunning: for every new job in blue states, red states are producing three. Every year a net three million people are voting with their feet and relocating out of blue states into red states. Big companies like Toyota are doing the same. Americans are saying: who needs New Jersey, or New York. The last person left in Rhode Island will have to turn off the lights.
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Arthur Laffer was a member of President Reagan's Economic Policy Advisory Board for both of his two terms. His influence in triggering a world-wide tax-cutting movement in the 1980s earned him the distinction as "The Father of Supply-Side Economics." He currently lives in Nashville, Tennessee. Stephen Moore, who formerly wrote on the economy and public policy for the Wall Street Journal, is chief economist at The Heritage Foundation. He lives in Washington, D.C. Together, they are the authors of numerous national bestselling books on economics.
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