People are leaving places like California and New York, for Texas and Florida respectively. In other words, people are leaving high tax states for low tax states.
If one were to check the incomes of those who leave, it is more than likely it’s the income producers that are leaving, with the low or no income people staying for the better government health care, welfare welfare checks, unemployment checks, and food subsides, in NY California.
This leaves fewer high income earners behind to pay for the same number of people, more voters to vote themselves people who will take the high income producers, and worse budgets in the long term.
This gives municipal bond investors data to ponder. California and New York are busy blowing another real estate bubble, which will temporarily paper over these structural problems, until the cycle inevitably ends, exposing these structural weaknesses.
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