Moore: Want lower prices? Move to a red state
The recent election results in New York, New Jersey, and Virginia have sparked a renewed focus on the issue of “affordability,” as voters express increasing frustration over rising prices. In a landscape where everyday essentials like steaks, hamburgers, coffee, and rent have surged in cost, the Democratic Party is seizing this sentiment as a potential pathway to regain voter support following a challenging electoral climate. With many Americans bracing for significant increases in health care premiums—projected to rise by 10% to 20% in January—the urgency of the affordability narrative is palpable. Democrats believe that by addressing these economic concerns, they can reconnect with constituents who feel the pinch of inflation.
However, the question of accountability looms large. While President Donald Trump campaigned on promises to reduce prices, the reality is that his administration’s tariffs have contributed to price hikes on various goods, including coffee and automobiles. Despite this, a closer examination reveals that inflation rates have fluctuated significantly since the onset of the COVID-19 pandemic. Under Trump, the average inflation rate was approximately 2%, whereas during President Joe Biden’s term, it has risen to about 5%. Interestingly, current inflation rates under Trump’s policies have been reported at around 3%. This context complicates the narrative, suggesting that the roots of inflation are intertwined with broader economic trends rather than solely attributable to one administration.
Moreover, the irony of the affordability issue is underscored by the economic realities of blue states versus red states. According to U.S. News & World Report, nine of the ten most expensive states are governed by Democrats, while all ten of the lowest-cost states are led by Republicans. This trend highlights how liberal policies often correlate with increased living costs, driven by higher taxes, stringent regulations, and elevated minimum wage requirements. For instance, energy costs in states like California and New York are significantly higher due to environmental policies that restrict access to cheaper energy sources. As a result, the very policies aimed at improving quality of life may inadvertently contribute to the financial strain felt by consumers. As Stephen Moore, a former senior economic adviser under Trump, points out, the progressive policies that are intended to uplift communities can lead to heightened economic stress, leaving voters to grapple with the paradox of rising costs in states governed by Democratic leadership.
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
