4 ms·
It's the Pareto principle. People go where they feel they will have more opportunities, and they take their economic activity with them. Intra-national economi
by Sophistifunk 9y ago
It's the Pareto principle. People go where they feel they will have more opportunities, and they take their economic activity with them.
Intra-national economic migrants are able to take their families with them, so they don't have the need to "send money home" the way so many international economic migrants do.
- theseus7 9y agoThe more general principle is that investors put their money where it generates the highest return. Since the United States taxes land rents much less than it taxes labor and capital, investment leaves agricultural areas where farming is heavily dependent upon labor and capital, and moves to coastal cities where land values are highest. It moves out of rural areas and into urban areas at an accelerating rate because that's where our broken tax system tells it to move. This market distortion could be permanently corrected by replacing taxes on labor with taxes on land values.