Trump: Blue state 'ghettos' loom as wealth flees

President Donald Trump said Tuesday that wealthy residents and businesses are leaving Democrat-led states in record numbers, warning that the trend could have long-term economic consequences if it continues.

In a post on Truth Social, Trump wrote, "Rich people and Companies are pouring out of Dumocrat run Blue States at levels never seen before! If this trend continues, these States will become the 'Ghettos' of the Future — No people, no money, no hope."

Trump made the comments while responding to a Just the News report highlighting the relocation of several companies from Illinois and California, two states that have experienced high-profile corporate departures in recent years.

Among the latest moves is True Value Hardware, which is relocating its headquarters from Illinois to Fort Wayne, Indiana, following its 2024 bankruptcy and acquisition by rival Do It Best. The company said the move would provide long-term stability and place it in a more business-friendly environment.

True Value joins other companies that have moved headquarters out of Illinois in recent years, including Boeing, Tyson Foods, Caterpillar, and Morton Salt. Caterpillar previously cited Illinois' fiscal challenges and tax climate as factors influencing its decision.

California also has seen major corporations relocate their headquarters, including Charles Schwab, Hewlett Packard Enterprise, Tesla, Chevron, SpaceX, and Public Storage. Several companies have cited taxes, regulations, or broader business conditions among the reasons for their moves.

The report Trump shared also pointed to U-Haul's annual Growth Index, which tracks one-way customer moves. Recent rankings have shown states such as Texas, Florida, North Carolina, Tennessee, and Arizona among the top destinations for movers, while Illinois and California have ranked among the states with the largest net outbound migration.

The report also noted the Chicago Bears announced plans this year to relocate to Hammond, Indiana, after more than a century in Chicago, although the team's decision involved stadium and development considerations in addition to broader business issues.

Democrats have generally supported higher taxes on corporations and wealthy individuals. A March 2025 Pew Research Center survey found that 81% of Democrats and Democrat-leaning independents favored raising taxes on large businesses, while 74% supported increasing taxes on households earning more than $400,000 annually.

Other recent polling has similarly found broad Democrat support for targeted tax increases on high-income earners and large corporations.

Critics of higher business taxes contend such policies encourage companies and high-income residents to relocate to states with lower taxes and fewer regulations.

Supporters of the policies maintain they are needed to fund public services and reduce economic inequality, and note that companies often relocate for multiple reasons, including labor markets, operating costs, real estate, infrastructure, and corporate restructuring.