Tag Archives: blue state wealth

PUBLIC POLICIES AFFECT OUR INCOMES

Nine of the ten US States with the highest median household incomes voted for a liberal in the last presidential election. The only outlier among the high income states was Alaska. At the other end of the income scale, nine of the ten US States with the lowest median household incomes voted for a conservative. The only outlier was New Mexico. The same tendency is apparent when all states are considered. 80% of the states with household incomes above the US median voted for President Obama. 67% of states with incomes below the US median voted for Mr. Romney. For convenience I’ll go with the conventional names and call the more liberal states “blue” and the more conservative states “red”.

Reading down the list of states by income, it is clear that the leaders are blue states with moderate to liberal policies at the state level. In general they are the states which spend more on social safety net programs and public education. They also tend toward the moderate or liberal part of the spectrum on social issues like same sex marriage, abortion, and immigration reform.

Reading up from the bottom of the list of states by income, you will find red states that spend less on social safety net programs and public education. And they tend toward the conservative end of the spectrum on same sex marriage, abortion and immigration reform.

How can these patterns be explained and what can be learned from them? Here are some ideas. By focusing their resources on assuring good public education and access to health care for everyone, including those with low incomes, the blue states develop strong work forces that attract good paying jobs. Some will argue that many jobs have moved to the low-tax environments in the red states and there may be some truth in that. It should be noted that many businesses that talk about such relocations are not only seeking low taxes. They are seeking low wages. If there has been movement of jobs to red states, it appears to have perpetuated their low wage environment rather than improving it.

The relatively liberal social policies of the blue states seem open to more people regardless of sexual orientation or immigration status; and some people looking for such openness also have the economic and intellectual means to start businesses that create economic growth. They gravitate to places where their lifestyles and freedom are respected – bringing economic growth that benefits everyone. If my thinking is wrong, then how would one explain that blue state residents clearly have higher incomes?

It is our tradition to be a nation with regional cultural differences and that will certainly continue. And it has also been our tradition to learn from each other’s successes and failures. In 1789 North Carolina created the first State operated university. Other states saw how well the idea worked and copied it. Cincinnati created the first paid fire department in the US in 1853. The idea succeeded and was copied across the nation. Today hardly anyone thinks of public universities or fire departments as liberal or conservative ideas.   They are simply accepted as ideas that work well and that contribute to the success of everyone in the community.

It is time once again to look across state lines and see which public policies are producing the best results. Blue states are leading the nation in median income, educational attainment, and life expectancy. Red states are leading in poverty-related problems including divorce, adolescent pregnancy, and shorter life expectancy. Low funding of education and safety net programs are not producing good results. Restrictions on the personal freedoms to control one’s own body and to marry the person of one’s own choice do not contribute to the success of a state or its citizens.

It’s time to look carefully at what works and what doesn’t and then move ahead with public policies that enhance personal freedom and encourage success. With that attitude and all of our other advantages, North Carolina can become the economic envy of the nation. Two things are required if we are to achieve that. First, we must pay attention to the management and effectiveness of our public policies – stop tearing down public institutions and government and begin making them more creative and efficient. Second, we must study what works (whether a “liberal” or “conservative” idea) and adopt the public policies that lead to success.

There is no question about our ability or our resources. We can be as great as we choose to be. The important questions are about our willingness to abandon hard line ideologies in favor of doing the things that produce the results that we want. Those choices will be made by voters. Without the willingness to adopt successful public policies we can be thankful for our friends in Mississippi. They will assure that we don’t finish last.