Moore: Want lower prices? Move to a red state
The current political landscape is buzzing with discussions around “affordability,” particularly following the recent election outcomes in New York, New Jersey, and Virginia. Voters in these states are expressing growing concerns about rising prices, which Democrats believe could be a pivotal issue in regaining voter support after a tough year marked by a Trump-led sweep. The frustration is palpable as Americans face soaring costs for everyday essentials—steaks, hamburgers, coffee, and rent are all more expensive than ever, with many bracing for 10%-20% increases in health care premiums come January. This backdrop of economic anxiety is shaping the narrative as Democrats attempt to pivot the conversation around affordability to their advantage.
However, the question of blame is complex. While President Trump promised to lower prices, his administration’s tariffs have inadvertently contributed to rising costs for certain goods, such as coffee and cars. Interestingly, despite the narrative surrounding inflation, the data suggests a nuanced picture: the inflation rate during Trump’s first term averaged 2%, while Biden’s four-year term has seen an average of 5%. As of this year, inflation under Trump stands at 3%. This contradiction highlights a broader trend where states governed by Democrats often experience higher inflation rates. According to U.S. News & World Report, nine of the ten most expensive states are either blue or purple, with the exception of New Hampshire, while all ten of the lowest-cost states are led by Republican governors.
The reasons for these disparities are multifaceted. Blue states typically face higher living costs due to a combination of liberal policies that increase taxes, enforce stringent minimum wage laws, and promote expensive renewable energy mandates. For instance, electricity costs in states like California and Connecticut are on average double those in states like Texas, largely due to climate change policies that restrict access to affordable energy sources. This reality starkly contrasts with the affordability seen in many Republican-led states, such as Arkansas and Mississippi, which, while often poorer and more rural, offer a lower cost of living. As the political discourse continues to evolve, it becomes clear that the intersection of policy decisions and economic realities is central to understanding the affordability crisis and its implications for voters across the nation.
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
