Anyone who thinks that President Obama’s economic policies will spur strong growth should consider U-Haul rates between California and Texas.
Renting a 20-foot truck one-way from San Francisco to San Antonio, for example, will cost $1,693. But the U-Haul tab to go in the opposite direction is just $983.
To University of Michigan economist Mark Perry, who has tracked this “U-Haul Index,” the difference in these rental rates is the result of straightforward supply and demand.
Put simply, far more people want to leave California for Texas than vice versa.
Why? Because California’s economy is moribund while Texas’ is thriving.
“The American people and businesses are voting with their feet and their one-way truck rentals to escape California and its forced unionism, high taxes, and high unemployment rate for a better life in low-tax, business-friendly, right-to-work states like Texas,” noted Perry, who is also a scholar at the American Enterprise Institute.
See the graphs and
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