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September 28. 2012 12:39AM
Analysis: Red states seeing more 'green' than blue states
In the years since the recession began, so-called “red states” are seeing more “green” than their Democratic-leaning counterparts or swing states.
Analysis conducted this week by the newspaper USA Today shows that personal income in states where political preferences lean toward Republican values, known as “red states,” has risen 4.6 percent since December 2007, when economists say the U.S. recession began. In the Democratic-leaning “blue states,” and Washington, D.C., income has risen 0.5 percent. In a dozen so-called swing states, which have been identified as areas where voters could side either way in the 2012 presidential election, income has gone up 1.4 percent in 4 1/2 years. Four of the 10 slowest-growing states — New Hampshire, Michigan, Florida and Nevada — are swing states. Nevada’s income is down 10.8 percent, largely due to the collapse of its real estate market.
The analysis cites energy and government benefit payments (such as food stamps) as the main drivers behind the increases in the red states.
USA Today reports the blue states it looked at are considered more affluent, but residents in those areas were hit harder by the recession. Connecticut, a state largely dependent on the financial industry, suffered the largest income drop outside swing-state Nevada — though Connecticut residents still earn, on average, $10,000 a year more than people in faster-growing income states like North Dakota.
The income data used in the analysis comes from the Bureau of Economic Analysis, comparing how red, blue and swing states have weathered the recession through June 30. Blue states are traditionally considered to be richer, and have larger populations, than red states. The analyses shows 42 percent of the nation’s income is earned in blue states, compared to 30 percent in red states.
North Dakota, a red state, tops the nation in income growth. Eight of the top 10 states in terms of income growth lean toward Republican values in political polling, according to the analysis.
Compensation has dropped 2.1 percent in swing states and 1.8 percent in blue states since December 2007, but is up 1.7 percent in red states. The analyses credits a 25 percent increase in government payments nationwide with helping boost earnings.
Analysis conducted this week by the newspaper USA Today shows that personal income in states where political preferences lean toward Republican values, known as “red states,” has risen 4.6 percent since December 2007, when economists say the U.S. recession began. In the Democratic-leaning “blue states,” and Washington, D.C., income has risen 0.5 percent. In a dozen so-called swing states, which have been identified as areas where voters could side either way in the 2012 presidential election, income has gone up 1.4 percent in 4 1/2 years. Four of the 10 slowest-growing states — New Hampshire, Michigan, Florida and Nevada — are swing states. Nevada’s income is down 10.8 percent, largely due to the collapse of its real estate market.
The analysis cites energy and government benefit payments (such as food stamps) as the main drivers behind the increases in the red states.
USA Today reports the blue states it looked at are considered more affluent, but residents in those areas were hit harder by the recession. Connecticut, a state largely dependent on the financial industry, suffered the largest income drop outside swing-state Nevada — though Connecticut residents still earn, on average, $10,000 a year more than people in faster-growing income states like North Dakota.
The income data used in the analysis comes from the Bureau of Economic Analysis, comparing how red, blue and swing states have weathered the recession through June 30. Blue states are traditionally considered to be richer, and have larger populations, than red states. The analyses shows 42 percent of the nation’s income is earned in blue states, compared to 30 percent in red states.
North Dakota, a red state, tops the nation in income growth. Eight of the top 10 states in terms of income growth lean toward Republican values in political polling, according to the analysis.
Compensation has dropped 2.1 percent in swing states and 1.8 percent in blue states since December 2007, but is up 1.7 percent in red states. The analyses credits a 25 percent increase in government payments nationwide with helping boost earnings.
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