Defenders of blue state economics argue that incomes are higher in blue states like California and New Jersey than red states like Arkansas and Oklahoma. True, but the gap is rapidly narrowing every day and if trends continue soon, blue states will be poorer.

Unleash Prosperity Senior Fellow Richard Vedder and UP researcher Nicholas Jadwisienczak have examined reasons why there are wide variations in the rate of economic growth in the 50 states since the beginning of this century, and have found the single best explanation: differences in political orientation.

These income growth numbers are pretax, so if we measured AFTER-tax incomes the red states gained income at nearly 50% faster so far in the 21st century. This is because income tax rates are nearly twice as high in the blue states.

As we’ve explained dozens of times (visit our website VoteWithYourFeet.net) families and businesses are fleeing states with high taxes, draconian environmental and forced union policies associated with Democratic governmental control. Blue states like California, New York, and Illinois have had massive out-migration in recent years.

Vedder’s full study will be released in the weeks ahead. Sadly, blue states are doubling down on death spiral tax policies (see below).