My brother-in-law packed up his family and left California for Texas last year. House prices in San Diego were bonkers, taxes kept climbing, and he got tired of the whole political circus. Six months after landing in Texas, he bought a four-bedroom place for half what a tiny condo would’ve cost back home. His business picked up. Now he won’t stop talking about how much better everything is.
He’s part of a bigger picture that most folks aren’t watching closely enough. Why the MAGA economy is thriving isn’t some complicated mystery. People are moving to red states in huge numbers, and those states are absolutely killing it right now.
What Is MAGA Economy When You Strip Away the Politics?
What is MAGA economy, really? It’s bigger than red hats and political rallies. The Economist looked at all the Republican areas in America and added up their economic output. If those regions were their own country, you’d be looking at a $10 trillion economy. Only the U.S. and China would be bigger.
Florida, Texas, Tennessee, Georgia, and Arizona. These places are pulling in people by the truckload because you can actually afford to live there. Your paycheck goes further. You can buy a house without emptying your retirement account.
The MAGA economy includes conservative shoppers, companies that sell to them, and areas where Republican policies run the show. Think Black Rifle Coffee, Boot Barn, and Fox Corporation. These brands aren’t chasing trends or trying to be cool on Twitter. They sell stuff people want at prices that make sense.
Numbers Tell the Real Story
Florida added 1.6 million people recently. Texas brought in 1.3 million. California and New York? They’re watching people leave in droves. My cousin’s neighbor in Brooklyn sold everything and moved to North Carolina. Got double the house for half the price.
The state of the economy today depends entirely on your zip code. Red state? Things are probably looking up. Jobs are there, wages are growing, and new businesses keep opening. Blue state? It’s rougher.
Investment funds are tracking this stuff now. There’s actually something called the MAGA ETF, and it’s been stomping the Democratic version called DEMZ. Goldman Sachs built an index following companies that benefit from GOP policies. Over ten years, those stocks have beaten the broader market by a lot.
My friend who works in finance cracked up when I brought this up. “Where do you think smart investors are putting their money? They follow profits, not bumper stickers.”
Why the MAGA Economy Is Doing Well Gets Down to Basics
So why the MAGA economy is doing well while other areas are having a tougher time? A few reasons stick out.
Cost of living matters more than anything. Housing in California runs three times what you’d pay in Tennessee. My brother-in-law was dropping $3,500 monthly for a two-bedroom apartment in San Diego. People in Dallas get whole houses with yards for that same amount. That’s not politics talking. That’s your bank account.
Taxes make a difference too. Red states usually keep taxes low or skip state income tax completely. Florida, Texas, and Tennessee don’t take huge bites from your paycheck. Keep more money, spend more money, save more money. Pretty straightforward.
Regulations play a role. Less government paperwork means businesses can operate without drowning in compliance headaches. A guy I know runs a small manufacturing outfit. He moved from Illinois to Georgia and said the change was massive. Hiring people got easier. Expanding didn’t mean waiting months for permits.
Then there’s something people avoid mentioning. Folks are moving to places where the politics line up with how they see the world. After pandemic lockdowns dragged on forever, people got fed up. They wanted to live somewhere that wouldn’t close schools for two years or require vaccine cards to grab dinner.
The Perception Split Is Wild
Here’s something nuts. Before Trump won the election, half of Democrats figured the economy under Trump would tank. Only 6% of Republicans thought things would get better. Those numbers completely flipped. Now 49% of Republicans say the economy’s great, and just 8% of Democrats do, an even wider gap.
What do economists say about the economy? Depends on who you ask. Leftist types cite income gaps and differences in life expectancy between red and blue states. Conservative economists see job growth, people moving in and G.D.P. rising in red states.
The crazy part? Both sides have real data backing them up. We’re basically living in two separate economies, and that’s not even an exaggeration anymore.
Business Follows the Customers
Companies see this divide and adjust accordingly. Boot Barn sells western wear and work boots. They’re crushing it. Cracker Barrel and Olive Garden pack in crowds in red state markets. WinCo competes with Costco and thrives in Republican zones.
These aren’t flashy tech startups. They’re not trying to disrupt anything or save the planet. They sell boots, pancakes, and groceries to customers who want exactly that. No political messages, no confusing mission statements. Just business.
Tesla’s having a weird moment right now. Elon Musk backing Trump apparently tanked sales in blue counties but massively boosted them in red ones. TD Cowen figures Tesla will drop over 100,000 vehicle sales in Democratic areas but gain double that in Republican ones.
The country’s splitting into two totally separate consumer markets.
Jobs Are Going Different Directions
Where people work is changing too. Back in 1993, roughly the same percentage of folks had tech and information jobs in red and blue counties. Today, that number’s 30% lower in Republican areas. Manufacturing jobs went up instead.
Red states focus on agriculture, logistics, manufacturing, and energy. Blue states lean into tech, finance, and creative stuff. Neither approach is right or wrong. They’re just different. Right now, though, the red state version is winning the population and money race.
More Americans earning over a million dollars yearly live in Trump-voting states now than ten years back. In 2014, it was 43%. By 2024, it hit 47%. Regular working people are earning more in these states too because their money stretches further.
People Keep Moving South
My aunt’s neighbor in New York just put her house up for sale. Florida-bound. Done with winters and taxes. That exact story is happening thousands of times daily.
Economist Steve Moore calls this “the most significant economic and demographic trend in America today.” For 200 years straight, the Northeast was America’s economic engine. New York, Philadelphia, and Baltimore ran the financial show. Not anymore.
For the first time in American history, the Southeast is now the top region for economic production. That’s absolutely bonkers when you sit with that fact for a minute. The whole center of American economic power is shifting south and west.
The Problems Nobody Wants to Talk About
Look, it’s not perfect. Red states have lower life expectancies on average. Mississippi and Louisiana see people living to 71-73, while New York and California are closer to 77-79. That’s a real problem that needs fixing.
Gun death rates run higher in red states. Healthcare access can be spotty. Education funding often lags behind.
Here’s a worry that red state residents are starting to voice more. What happens when all these people moving from blue states bring their voting habits along? Real concern exists that Texas or Florida might turn purple because of California and New York transplants.
My brother-in-law swears he’s done with California politics forever, but his Austin neighbors aren’t convinced all the newcomers feel the same way.
What All This Actually Means
The question of why the MAGA economy is thriving comes down to Americans voting with U-Haul trucks. They’re heading to places where money goes further, taxes stay lower, and politics match their values. Businesses follow because customers are there.
Red states create jobs, pull in investment, and grow their populations. Blue states see the opposite, at least the pricey coastal ones. This trend isn’t slowing down one bit. If anything, it’s speeding up.
Does this prove red state policies work better? That’s a political argument, not an economic one. What’s obvious is millions of Americans prefer the red state approach, and they’re proving it with moving trucks and mortgage applications.
What It Comes Down To
Whether you think this is fantastic or terrible probably matches your political views. But the economic reality is pretty clear. The MAGA economy is growing, thriving, and pulling in both people and money at rates we haven’t seen in forever.
My brother-in-law’s doing better financially than California ever allowed. His kids have a backyard now. He pays way less in taxes. His business is expanding. Is his life expectancy slightly lower on paper? Maybe so. Does he lose sleep over it? Not for a second.
That’s the trade millions of Americans are making right now. Lower taxes and housing costs versus potentially weaker public services. More personal freedom but maybe a thinner safety net. It’s a choice, and tons of people are picking the MAGA economy model.
The real question isn’t whether this is happening. The data’s too obvious. The question is whether it keeps going, and what it means for America when half the country’s economy is booming while the other half struggles to keep pace.
