Blue‑state capital flight deepens insolvency

High taxes and high living costs push wealthy residents and mobile capital out of liberal cities and states. Because many city services and public‑sector jobs are concentrated at the top of local labor stacks, this outflow creates a structural revenue shortfall that local politics struggle to fix without painful reorganization. — If true, it reframes debates about state fiscal policy from short‑term tax fights to structural limits on urban governance and long‑run solvency.