For those in Washington obsessed with reducing income inequality, the standard prescription involves raising taxes on the well-to-do, increasing the minimum wage, and generally expanding government benefitsthe policies characterizing liberal, blue-state governance. If only America took a more progressive approach, the thinking goes, leaving behind conservative, red-state priorities like keeping taxes low and encouraging business, fairness would sprout across the land.
Among the problems with that view, one is particularly surprising: The income gap between rich and poor tends to be wider in blue states than in red states. Our state-by-state analysis finds that the more liberal states whose policies are supposed to promote fairness have a bigger gap between higher and lower incomes than do states that have more conservative, pro-growth policies.
|Richard K. Vedder is a Senior Fellow at the Independent Institute in Oakland, Calif., Distinguished Professor of Economics at Ohio University, and co-author (with Lowell Gallaway) of the award-winning Institute book, Out of Work: Unemployment and Government in Twentieth-Century America.|
|Stephen Moore is Chief Economist at the Heritage Foundation.|