Sunny Days in Heaven
Spiritual/Political/Philosophical Blog on the Nature of Truth and Falsehood and Heaven

Saturday, July 16, 2005  

Wealth - Red vs. Blue States

Ever wonder why the Blue states are richer than Red states? I have.

The blue states (19 in all, excluding Washington D.C.) had an average per capita income in 2004 of $35,584. The red states (31 total) came in much lower, with an average per capita income of $29,724.

Why is the per capita income of people in Connecticut the highest in the country? After all, what do they make in that state that makes them so rich?

Well, nothing much really. But they are close to New York City. There is a lot of old money around, and in NYC, there are fortunes to be had.

But at what? They don't make a lot of necessities in NYC. Not too many auto makers, tractor factories, or food processing plants.

But it is the financial capital of the USA (and maybe the world). It is a huge media and advertising center. Probably most foundations reside there.

So a lot of people make money off of handling other people's money, and a great number make money off of media - books, magazines, fashion, news, TV, radio, advertising, marketing and such.

Entertainment and all the attendant things which service that industry (like caterers) gets well paid. They are selling something for which there is a great demand. Much the same as Los Angeles does. Movie, music, and television people make a lot of money because demand for their product is high (even when it's not very good).

If you subtract those industries and leave the Blue states with financial and insurance service industries, you would knock down the lead those states have over Red ones (I would think).

The article I quoted from above does not explain how the Red states are closing the gap. What kind of work are they doing which is generating more wealth? As the population shifts, will the traditional job centers in the Northeast shift, too, to the South and Southwest?

The Democrats have done such a great job of raising taxes and ruining their cities that people are leaving, and will be taking their money and jobs with them.

posted by Mark Butterworth | 6:38 PM |