Moore: Want lower prices? Move to a red state
The recent election results in New York, New Jersey, and Virginia have brought the issue of “affordability” to the forefront of political discourse, highlighting a growing concern among voters about rising costs. As Americans grapple with soaring prices for everyday essentials—ranging from food items like steaks and hamburgers to healthcare premiums projected to increase by 10%-20% in January—Democrats are seizing this sentiment as a potential pathway to regain voter support following a challenging electoral landscape. The narrative suggests that dissatisfaction with rising costs could translate into political gains, as voters express their frustrations over the perceived decline in affordability during the Biden administration.
However, the question of blame for the current inflationary pressures is complex. While former President Donald Trump had promised to lower prices, his administration’s tariffs have contributed to increased costs on certain goods, including coffee and automobiles. Despite these challenges, inflation rates have shown a decline since Trump left office, with the average inflation rate during his presidency recorded at 2%, compared to 5% under Biden’s term thus far. The article points out an ironic twist: states led by Democrats tend to experience higher inflation rates and cost of living, with data from U.S. News & World Report indicating that nine of the ten most expensive states are blue or purple. In contrast, Republican-led states typically boast lower living costs, with the five least expensive states, such as Arkansas and Mississippi, often being poorer and more rural.
The disparity in living costs between blue and red states can be attributed to a range of liberal policies that inadvertently drive up expenses. Higher taxes, stringent minimum wage laws, and ambitious renewable energy mandates in blue states often lead to increased costs for consumers. For instance, electricity prices in states like California and Connecticut are significantly higher due to climate policies that limit access to cheaper energy sources. This situation illustrates a broader trend where progressive policies, although well-intentioned, can create financial strain for consumers, fueling their anger and dissatisfaction. As Stephen Moore, a former economic adviser to Trump, notes, the very policies designed to promote social welfare may be contributing to the affordability crisis that voters are increasingly concerned about. As the political landscape evolves, the affordability issue is likely to remain a focal point in upcoming elections, shaping the strategies of both major parties.
https://www.youtube.com/watch?v=CTD_kyZRvio
The buzzword of the month is “affordability,” and based on the election results from New York, New Jersey and Virginia, voters think that’s declining. Democrats think they’ve found a winning issue here to win back the hearts and minds of voters after the Trump sweep last year.
It’s true that people are angry about prices. Steaks and hamburgers are more expensive than ever. So are coffee and rents and medical care. Many Americans are about to see a 10%-20% increases in their health care premiums starting in January.
But who’s to blame? President Donald Trump said he would bring prices down; that hasn’t happened. His tariffs have nudged up prices on certain products like coffee and cars. But since Trump came into office in January, the inflation rate has fallen. If we go back to the start of COVID-19, we find that much of the rise in prices of everything you buy is because of Biden inflation, not Trump inflation. The average inflation rate in Trump’s first term was 2%. In former President Joe Biden’s four-year term, it was 5%, and under Trump so far this year, it’s 3%.
It’s ironic that Democrats have picked up on the affordability theme, because we know that in states where Democrats rule, inflation tends to spiral out of control. In terms of cost of living, blue states are lots more expensive, and red states are more affordable.
The U.S. News & World Report ratings show nine of the 10 most expensive states are either blue or purple states. New Hampshire is the one outlier. Meanwhile, all 10 of the lowest-cost states are run by Republicans.
Some of the states with the lowest cost of living are the poorest and most rural states, such as Mississippi and Arkansas. And the richest states, such as Massachusetts and California, are among the highest-cost states.
Five Lowest-Cost States:
— Arkansas
— South Dakota
— Mississippi
— Oklahoma
— Louisiana
Five Highest-Cost States:
— California
— New York
— Massachusetts
— Illinois
— New Jersey
But blue states tend to have higher costs not just because they are richer.
It’s because liberal policies raise costs. Blue states have higher taxes, and some of those costs get passed on to consumers.
Blue states are more likely to have high minimum wage requirements, higher energy costs due to expensive “green” renewable energy mandates, stricter forced union policies and high-cost regulations that restrict new housing, which raises the cost of buying a home in these areas.
Electricity costs are on average twice as high in states like California, Connecticut, Rhode Island and Washington because of their climate change policies that restrict cheap energy that is commonplace in states like Texas and Utah.
These are just a few examples of how Democratic politicians make products more, not less, expensive. It turns out the panoply of progressive “feel-good” policies are what make consumers feel angry and financially stressed out.
Stephen Moore is a former Trump senior economic adviser and the cofounder of Unleash Prosperity
