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Why Are Americans Jumping Ship

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The question needs to be asked why are Americans jumping ship and leaving California, New York and other cities in the United States for new locations? 

This is internal migration within the United States of America, not migration to other nations, particularly the English-speaking world and Europe. 

People migrated due to better economic prosperity or an escape from persecution immigration to the United States since the 17th century experienced waves of immigration from war-torn Europe, particularly the English exporting its religious extremists to the North American continent. 

People also tend to move locations due to economic prosperity and the perception of a better future, an example of this is the gold rush of the late 19th century to California. 

Now America is experiencing a new rate of internal migration, with over 600,000 people leaving the state of California and New York in 2022.

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Americans Jumping Ship to New Locations

In recent years 88 United States cities with a population of over 250,000 of these, 77 of these have experienced a shrinkage of the population or a slowdown in growth due to the mass exodus from American cities, which is having companies desperately trying to hold onto talent found within cities. 

Cities are economic powerhouses where traditional manufacturing exists, and greater access to Labour can be harnessed within one location. 

If we look back to the 19th century, 80% of people lived on farmland and sustained themselves through agriculture, and today people working in agriculture in developed countries hover around 4% of their population. 

With 77 of the 88 cities having low productivity or a loss of population, the United States may be experiencing 87.5% of United States cities in serious trouble in coming years. 

The reason why there may be trouble is without a young population that is paying taxes and keeping the local economy running, the local legislators and governments of the cities and states, depending on how internal taxation works within the United States, the cities and government benefits will no longer be sustainable in the long-term. 

Without taxation, there can be no government programs or benefits because, without taxation, there must be services that keep modern cities running.

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The 2008 Credit Crisis

In the year 2000, the trend for people to move away from cities began with bankers lending to People who would not traditionally be able to afford mortgages to buy houses in the suburbs. 

The moment these mortgage interest rates went up meant that certain people never paid back their mortgages, triggering the 2007 housing crisis, which collapsed the global economy in 2008. 

During the 2008 credit crunch, banks lost over US$1 trillion in bank loans and toxic assets; between 2007 and 2009, people were kicked out and forced to leave their properties where they were forced to move back in with their parents, moving to apartments or alternative living arrangements like being homeless. 

After the 2008 credit crunch and collapse of the US housing market in 2007, cities began to grow again due to a lack of options or options being taken away so that people could no longer live in the suburb. 

Due to this devastating event and lack of access to credit, the millennial generation put off raising families and made more significant focus on their careers. 

However, according to geopolitical analyst and political analyst Peter Zeihan, the millennial generation is the most underqualified in United States history. 

This levies the underskilled workforce the USA need to run its economies, and by the time the next generation is ready, it will be in the 2040s in terms of overall skills in years the millennials have at least lost half a decade. 

From 2021 to 2022, the United States experienced a decline in city populations of 0.95%; this is the first time in recent American history that its cities have experienced a population decline.

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The Loss of Population in American States

With Americans jumping ship of its 50 states, these are the divided territories of the United States governed by each state under the leadership of the central government led by Washington DC in the office of the president of the United States of America. 

Of these 50 states in 2022, California, New York, and Louisiana experienced the most population loss from their states of population. 

In 2022, California lost 343,000 of its current population, 39.2 million, to internal migration within the United States of America. 

New York lost 300,000 of its current population of around 19.8 million, and Louisiana lost 46,600 people, with its overall population of approximately 4.6 million, to internal migration within the USA. 

The trend of people leaving these three states began in 2020 with American citizens trying to escape large cities due to the COVID-19 pandemic and lockdown, which some individuals saw as draconian and infringing on American liberties. 

For People who are not American, it is essential to remember the context of the founding of the United States in rebellion against its whole nation Great Britain starting in the American Revolutionary War from 1775 until 1783, with the United States declaring its independence in 1776. 

With this history, the United States population is naturally in certain areas of its people, and political culture is antic central government authority because it was a central authority which the founding fathers and the 13 colonies rebelled against in 1775. 

A further example of Americans being firmly against the central government’s power is during the American Civil War from 1861 to 1865 when the southern states rebelled against the US federal government based in Washington over the divide between state and federal government’s rights. 

Another interesting fact to highlight about this event is that American politics allows large-scale disputes, at least on paper, to be resolved through an armed conflict like the Civil War rather than have issues resolved peacefully. 

This is baked into the American political culture that these kinds of conflicts can be resolved at the point of a bayonet. 

It’s also important to highlight that the New York state area of New Jersey lost 64,200 people to migration in 2022, and Connecticut lost 13,500 to migration. 

The fall in these populations can be linked to the financial services that dominate these states’ economies, and with people not moving back to big cities having experienced the countryside or urban areas, it is seeing the wealth transfer out of major cities. 

This can be further seen in Massachusetts, which lost 57,000 residents in 2022 to internal migration. 

Losses of these populations in New York and Massachusetts could be a precursor of economic depression in the Northwest of the United States, with the New York economy making 8% of the total USA GDP and Massachusetts making up 3% of GDP. 

This means these two states are worth 10% of the American GDP. The continuing population loss will lead to lower tax revenues, many cities cannot run their public services, and the local economy will collapse if this trend is not reversed. 

There is a strong correlation between people leaving states with big cities, with Illinois losing 141,600 and Pennsylvania 40,000 people to migration within the United States. 

Also, eight out of the ten largest cities in the United States have recently lost some of their population; these states which are losing people to internal migration are New York, Philadelphia, Los Angeles, Houston, San Diego, Dallas, Chicago and San Jose.

Sources and Biography

https://www.cbsnews.com/news/states-where-americans-are-moving-florida-texas-north-carolina-south-carolina/

https://realestate.usnews.com/places/rankings/fastest-growing-places

https://www.nasdaq.com/articles/nearly-1-4-americans-are-looking-to-move.-these-are-the-cities-theyre-leaving-and-why

https://www.npr.org/2021/03/14/975826704/why-america-is-moving-money-space-family-lifestyle

https://www.axios.com/2023/01/31/cities-pandemic-moving-trends

https://www.forbes.com/home-improvement/features/states-move-to-from/

https://news.yahoo.com/americans-moving-urban-counties-141924038.html

https://www.theatlantic.com/newsletters/archive/2022/04/metro-areas-shrinking-population-loss/629665/

https://theweek.com/travel/1020498/why-are-americans-moving-south

https://www.pewtrusts.org/en/research-and-analysis/blogs/stateline/2022/03/23/the-pandemic-prompted-people-to-move-but-many-didnt-go-far

https://www3.forbes.com/money/the-u-s-states-people-are-fleeing-and-the-ones-they-are-moving-to-version-5-ifs-vue-mn-wnb-2/

https://www.nar.realtor/blogs/economists-outlook/where-people-moved-in-2022

https://www.cbo.gov/publication/58612#:~:text=Population%20Growth.,per%20year%20over%20that%20period.

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The Greatest Threats to American Economic Security

With America’s growing conflict with China and since the election of Bill Clinton to the presidency in 1992, America, for over 32 years, has consistently voted in presidents that are less interested in global affairs and the global economic system the United States created to win the Cold War from 1945 to 1989.

With the end of the Russian threat, the United States has become less interested and is uncoupling its global supply chain and its connections to other international and national economies and bringing back manufacturing jobs in the US.

The USA is doing this for two reasons. The first reason is that the public within the United States is no longer interested in being the global guarantee of global prosperity, being the global policeman and interfering in regional and global conflicts.

The second reason is the generation that fought during World War II from 1939 to 1945 or from 1941 to 1945. For US readers, primarily dead or retired in the Boomer generation born between 1946 and 1964 grew up during the most peaceful time in human history.

In practical terms, this means that generations that lived before American security and American prosperity in the global system are no longer around and within collective living memory support international and governmental organisations such as the European Union and the International Monetary Fund.

United Kingdom’s former Prime Minister John Major, who was PM from 1990 to 1997, lost the support of the UK Conservative Party.

He suffered internal divisions throughout his tenure as prime minister after 1992 due to the generation that supported European integration retiring.

In the United Kingdom, the early 1990s saw a sea change like the United States, with the election of Bill Clinton as a move away from internationalism to internal nationalism.

Oil Refinery

US Manufacturing and Processing

The United States is bringing manufacturing home; however, the US still is to build out its processing capabilities in three significant areas: industrial materials, agriculture and oil.

America will need to develop processing capabilities partnerships for materials like aluminium, copper, lithium and iron ore to support the industrialisation and buildout of industry manufacturing when homegrown United States cities like Detroit could experience a revival.

On the positive no US significant oil refineries, but there are mismatches due to different types of crude oil produced domestically within the US and refineries abroad in processing capabilities.

US refineries can be used to reduce dependency on outsourcing processing abroad.

A greater focus on processing domestic crude oil would further reduce American imports and output in the global economic environment from which America is decoupling.

Whether political, ideological, or environmental stance, developing these processing capabilities will allow the US to prop up various industries and avoid catastrophe.

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United States Navy and Geopolitics

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Suppose a nation wishes to be taken seriously in international politics and project its influence and power globally. 

If that is the case, it will require a powerful navy to meet the needs and requirements of its strategic goals, the long-term goal of policymakers, and the perceived national interests. 

To make the correct choices, it’s first necessary to understand what a Navy is for and what it can do regarding geopolitics. 

A Navy can control important points of international trade and leverage its naval power into leveraged against other nations (Just think of the Brits in the 18th Century). 

The Navy, particularly the British Navy of the 19th century and the American one of the 20th to the present day, policed the global oceans, thereby facilitating the viability of globalisation and prosperity. 

Previously if a nation could not access coal and steel, that nation would not be able to industrialise. 

In previous centuries, governments operated on principles of imperialism and Mercantilism, a form of economic nationalism that sought to increase the prosperity and power of a nation through restrictive trade practices. 

Its goal was to increase the supply of a state’s gold and silver with exports rather than to deplete it through imports. It also sought to support domestic employment.

The imperialist economic system meant that nations like Britain or France would conquer other countries, capture their internal markets, and sell to those markets goods from the home nations. 

A great example is the English control of India and flooding the market with British textiles during the Industrial Revolution in Great Britain in the 1760s. 

During the Imperial error, nations predominantly traded within the internal markets of the empires they established, and trading between other Imperial centres was greatly limited. 

This only changed because the United States made it so all nations could peacefully trade on international waters without fearing piracy and privateers being backed by other countries against their rivals.

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The American Navy Since World War II

On victory over Japan Day in 1945, the U.S. Navy had 1300 ships. 

This count only considers major vessels and not individual landing craft or short-range patrols, and by the end of the Korean War, the Navy shrank to 600 vessels. 

During the Vietnam War (1955 to 1975), the American Navy was 450 vessels, and when Ronald Reagan entered the White House in 1981, his primary goal was to have the American Navy of 600 ships by the end of his time in office United States at 594 ships. 

This was partly done due to Ronald Reagan’s administration’s plan to bankrupt the Soviet Union, which according to the geopolitical analyst Peter Zhilan had already lost the Cold War by 1986. 

Today’s American Navy stands at 295 vessels, again not considering smaller vessels used by the United States Navy. 

It also must be strongly stated that a modern American military vessel would have been able to destroy the Japanese Navy of 1941.

The Navy is much smaller than the peak during World War II, and the capabilities and capacities of the modern Navy are vastly more effective and powerful than anything else that has existed on this earth. 

The biggest concern about the current United States Navy is its overreliance on supercarriers.

The journalist and author of The Blue Age of the U.S. Navy Created Global Prosperity and Why We’re in Danger of Losing it, by Gregg Easterbrook. 

In his book The Blue Age, he compared heavily gunned ships like the Dreadnought (1906) created by the British Empire in the early 20th century to compare the global view of the capacity of modern-day supercarriers. 

As of 2021, an estimated 46 aircraft/helicopter carriers are in service worldwide. 

The United States has 11 aircraft carriers and 9 “hello” carriers, nearly as many as all other countries combined, followed by Japan and France, each with four. 

These carriers need Destroyer escort, with the American Navy only having 150 destroyers to escort its Carriers. 

According to Peter Zilhen, American supercarriers can knockout nations, but there are not enough destroyers and smaller ships of the American Navy to protect the world’s oceans.

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American Spending on Its Navy

In today’s American dollars, Ronald Reagan’s arms buildup in the 1980s to cripple the Soviet Union financially came to $400 billion yearly, more than twice the 170 billion United States spent on its Navy in 2020. 

A study by Brown University found that American fighting in Afghanistan, Iraq, Pakistan, and Syria has cost $6.4 trillion in funding as well as future obligations to injured soldiers from these deployments. 

The current budget of the United States Navy in 2020 worked out as $700 per American adult. 

During the COVID crisis of 2020 to 2021, the United States added 5.3 trillion in debt to tackle the crisis, which in terms of emergency aid, gave American households an extra $25,000 per American adult transferred from 2020 to 2021. 

Following the rising American national debt, which stands at $31,462,154,854,903 as of May 23, 2023, there is also a consumer increase in total household debt in the first quarter of 2023, increasing by $148 billion (0.9%) to $17.05 trillion. 

This led to comments by the former American senator and ex-presidential runner John McCain, who stated in 2013 that a 300-ship Navy is an ‘a fantasy’ again due to the USA’s national debt and government debt. 

Even more alarming is that Social Security and retirement for American citizens may no longer be feasible. 

In 2020 trustees of the Social Security system they reported $43 trillion in unfunded liabilities for pensions and healthcare for the ever-growing ranks of the ageing that the money does not exist.

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Sources

The Blue Age of the U.S. Navy Created Global Prosperity and Why We’re in Danger of Losing it, by Gregg Easterbrook. Link

Investopedia What Is Mercantilism? link

History Channel Vietnam War link

Britannica Dreadnought link

Federal Reserve Banks of New York Total Household Debt Reaches $17.05 trillion in Q1 2023; Mortgage Loan Growth Slows link

Fiscal Date What is the national debt? Link

Forbes What The U.S. Navy’s Supercarriers Give America That No Other Nation Has link

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