The Great Sorting is still in progress, as many major corporations are leaving Democrat-controlled states in favor of more business-friendly Republican states.
This trend is not surprising to anyone paying attention, though it seems to be overlooked by many Democrats, particularly in economic policy.
Recent evidence suggests that the disparity in personal income between red and blue states may be more pronounced than previously thought.
In fact, personal incomes in red states have been consistently outpacing those in blue states since 2000, and the difference is significant:
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.
— Ward Clark (@TheGreatLander) June 4, 2026
Again, this is a big deal. There’s also this: Life isn’t ‘cheap’ anywhere, but it’s a truckload cheaper in most red states than in blue states. There are many reasons for that, including huge differences in property, income, and use taxes, business regulations, rents, and insurance costs.
More:
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.
Incentives to move and live in one state or place over another state or place matter. Democrats couldn’t care less about that.
And honestly, at this point, it’s a wonder this migration hasn’t happened faster. Everywhere you look, blue states are losing population and businesses to red states.
So, the great sorting continues unabated. And Democrats being the Domestic Terrorist Party they’ve become, I don’t look for them to change anytime soon. Red states will continue to grow and prosper. Blue states will continue to shrink and breed misery.
