Monday, August 9, 2010
Blue states must be doing something right!
Republicans are fond of complaining of big government, high taxes and deficits and most of the blue states (Democratic states) represent the antithesis of the Republican economic ideal. Yet when comparing the actual economic performance of the red states versus the blue states we see that Republican pleadings leave a lot to be desired.
That's because the economic performance of the blue states come out on top by a large margin. Of the top 10 richest states ranked according to per capita GDP, nine were blue states. The average per capita GDP in those states exceeded the national average by 22%.
In contrast, of the 10 poorest states seven were red states, where the averge per capita GDP fell below the national average by 25%.
In total, the average per capita GDP of the red states fell below the national average by 11%, while average per capita GDP of the blue states exceeded the national average by 1.0%.
These results are even more striking when you take into consideration the fact that the red states on average received more Federal transfer payments than the blue states. Without that Federal support the red states would have scored much worse. And, similarly, without the net transfers paid by the blue states, their incomes would have been higher.