Moore: Want lower prices? Move to a red state
The recent election results from New York, New Jersey, and Virginia have spotlighted “affordability” as the key issue resonating with voters, particularly as they express frustration over rising prices. From groceries to healthcare, Americans are feeling the pinch, with many anticipating steep increases in health insurance premiums of 10% to 20% starting in January. This growing discontent has led Democrats to believe they can leverage the affordability narrative to regain voter support after a challenging electoral landscape last year, marked by a significant Republican victory.
However, the question of who is responsible for the rising costs is contentious. While President Donald Trump promised to lower prices, the reality has seen tariffs on goods like coffee and cars contribute to inflation. Notably, the average inflation rate during Trump’s presidency was 2%, compared to a higher 5% under President Joe Biden. The current inflation rate under Trump is 3%, suggesting that while prices have fluctuated, the narrative surrounding blame is complex. Interestingly, it is often in Democratic-led states where inflation tends to rise more sharply. According to U.S. News & World Report, nine of the ten most expensive states are blue or purple, while the ten states with the lowest cost of living are predominantly Republican. This disparity raises questions about the impact of liberal policies on the cost of living, as higher taxes, stringent regulations, and increased minimum wage mandates in blue states often translate into higher consumer prices.
Moreover, the economic landscape reveals a stark contrast between wealthy states like California and Massachusetts, which rank among the highest in living costs, and poorer, rural states like Mississippi and Arkansas, which offer more affordable living conditions. The higher costs in blue states can be attributed to a range of factors, including energy policies that drive up electricity prices and regulations that restrict housing development, further exacerbating the affordability crisis. As Stephen Moore, a former Trump economic adviser, points out, the very policies designed to promote social welfare may inadvertently lead to the financial strain that many consumers are currently experiencing. This irony highlights the complex relationship between political ideology and economic realities, as voters grapple with the implications of affordability in their daily lives.
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
