While President Biden struggles to understand the meaning of the term “recession,” Americans across the country—especially those fleeing places like New York and California—are feeling the effect of the recession in a real way. The cost of groceries and of government is crushing them. This is painfully felt in cities, where increasing costs as well as increasing crime erode the quality of life.
But the debate over the definition of a recession misses a larger point. We are witnessing a competition between two core philosophies.
On one side, we have the socialist model: high taxes, high regulation, less competition and declining public services with government imposing itself as the solver and arbiter of all social problems. On the other side, we have the Miami model: low taxes, low regulation and a commitment to public safety and private enterprise. The models present a stark choice on issues ranging from personal freedom, economic opportunity, public safety and the role of government.
People are voting with their feet by moving their lives, their jobs, their businesses and their families to low-tax states. Many Americans living in New York state and California are paying more than 50% of their annual income to local, state and federal governments. They are effectively employees of the state, beholden to a government with public services that neither deliver value nor ensure their personal safety.