One Nation, Two Economies

One Nation, Two Economies

Almost all news coverage of the current election season has focused on cultural issues such as gender, race, and immigration. What the media have missed are deep socioeconomic trends driving parts of the country in divergent political directions. President Trump has overseen a significant transformation in the geography of the nation's growth and prosperity. Instead of clustering along the coasts—as many progressives may have preferred—the nation's economic expansion is now increasingly benefiting red states, notably in the southeast, Texas, and the intermountain West.

Indeed, according to the most recent Bureau of Economic Advisors report, income growth is strongest in pro-Trump states. In the first quarter of 2018, the income-growth leader by far was Texas, with 6 percent growth, followed by Louisiana, North Dakota, Montana, Arkansas, and Iowa. All are growing faster, often considerably faster, than liberal states like California, Washington, Oregon, Massachusetts, and New York.

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