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ALEC in the Epoch Times: More Companies Join the ‘Great Migration’ to Red States

It’s the beauty of the 50 laboratories of our democracy. We’re able to quickly see what’s working and what’s not working across all issue areas.


By Kevin Stocklin

July 2, 2022

Amidst predictions of a political “red wave” in the upcoming mid-term elections, an economic wave has been building for years with no end in sight as companies flood out of blue states and into red states.

And as a result of its political divisions, America appears to now be dividing itself into prosperous, high-growth states and states that are suffering a chronic decline. But Democrat-run states believe their abortion policies could be a key factor in attracting companies back.

Caterpillar and Citadel, which in June announced their exit out of Illinois, are only the latest firms to leave high-tax, high-regulation states. Tesla, Hewlett Packard, Oracle, and Remington are also among the hundreds of companies flocking out of California, Illinois, New York, and New Jersey to business-friendly places like Texas, Florida, Arizona, and Tennessee. Relocating companies have spanned industries including tech, finance, media, heavy manufacturing, autos, and firearms.

“It’s a broader trend that we’ve been tracking for the last 15 years,” Lee Schalk, Vice President of Policy at the American Legislative Exchange Council (ALEC), told The Epoch Times. ALEC tracks state economic trends in their annual report, “Rich States Poor States.”

“You won’t see companies moving to states like New York, California, and New Jersey,” Schalk said. “They’ll be moving out of those states into neighboring states, where the policies are a little bit better, or they’ll be making the big move to places like Texas, Florida, North Carolina.”

“It’s the beauty of the 50 laboratories of our democracy,” Schalk said. “We’re able to quickly see what’s working and what’s not working across all issue areas. Unfortunately, I don’t see the high tax and high spend states changing their ways.”

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