Savas Emanuel

Economics Research: Will the United States Economy Shift South?
Due to a lack of affordability and high taxes, the economic home of the United
States in the Northeast will shift to the South due to more financially optimal situations.
Since America’s birth, the Northeast has dominated The United States economy. Cities
such as Boston, New York City, and Philadelphia have been the powerhouse of the
economy. In the 20th century, many across the world dreamed of setting foot in New
York City and making their dreams come true. However, in the past few decades taxes
in the Northeast have skyrocketed upward and housing prices have become
unaffordable. As a result, the wealthy have seeked the South due to its lenient tax
codes, strong housing market, and even warm weather.
Over time, it has become clear that the Northeast is declining, and the South is
trending upwards. Bloomberg – a leader of economic and financial news – states “The
combined GDP of Texas, Florida, Georgia, Tennessee, and the Carolinas, surpassed
the GDP of the Northeast Region” (Bloomberg 2022). Factors such as warm weather
certainly propose a gentle incentive, but a variety of economic reasons are what is really
driving this shift in economic power. The Fraser Institute’s Economic Freedom of North
America Index, which measures economic freedom in the US, had the South’s average
rank placed at 8 versus Northeastern states average rank of 33. This is credible due to
a large metric of it deriving from tax codes and regulations. A substantial portion of this
ranking can be attributed to the significantly higher state and local tax burdens
associated with living in Northeastern states. This is important to note because people
with the ability to afford cheaper living conditions will choose places with lower taxes.

Overall, people are migrating southward due to suboptimal economic conditions faced
in the Northeast.
In addition to shifts in the geography of the GDP, there is a major shift in
population taking place in the United States. According to the US Census Bureau – the
official government organization responsible for documenting information about
population and demographics – the Northeast experienced an average numeric change
in population of -2130 across 82 cities in comparison to the South region experiencing a
numeric change of +1487 across 253 cities. Additionally, the US Census Bureau says
that eight out of 10 of the largest growing cities were in the South. Some of these cities
include Fort Worth TX, San Antonio TX, Charlotte NC, Jacksonville FL, and various
others found in Florida. There is a migration taking place due to the great fall in
population of the Northeast and great rise in population in the South.
While the wealthy can move solely off the basis of lower taxes and warm
weather, the middle and upper middle class require a greater incentive to move such as
higher earning potential, strong job opportunities, and affordable housing markets.
According to Business Insider, three of the top five cities for job opportunities and
earning potential are in Nashville TN, Austin TX, and Raleigh NC. Additionally, these
cities can host such incredible opportunities due to companies moving, higher education
opportunities, and a growth in the tech industry. For example, Nashville’s Economy has
grown significantly due to tech companies like Dell, Oracle, and Amazon moving there.
As for Austin Texas, corporations like Google, Apple, and Tesla have begun developing
offices there. Indeed.com, a leading website used for finding jobs, lists Nashville TN,
Atlanta GA, and Raleigh NC as some of the best cities to find jobs due to range of

fields, high gain, and overall demand for workers. Furthermore, housing markets in the
house are doing incredibly well. US News measures housing markets based on
metropolitan statistical areas and house value. US News ranks eight out of ten of the
best housing markets in southern cities. The best of these includes various cities in
North Carolina, Texas, Florida, Tennessee. Part of this can be attributed to a larger
housing supply in the South. A large part of the fantastic opportunity in the South can be
attributed to the amount of space and the fact that the Northeast has become drained of
its opportunities over centuries of power.
After centuries of economic dominance, the Northeast’s time in power is ceasing
and that the South is en route to claim its place. The Northeast has become too
expensive and undesirable for people of all social backgrounds. The South is providing
all the necessary incentives for people to move and stimulate the economy such as
economic freedom, strong job markets, and affordable housing markets. Cities such as
Fort Worth TX, Nashville TN, and Raleigh NC are the powerhouses of America’s future.
As of 2023, no Southern city has taken the place of powerhouse New York City but the
shift in population and growth in GDP suggests that in time, “The Empire State of Mind”
will soon become a figment of the average American’s imagination and the development
of a new American Dream will develop in the South.