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A recent column by Michael Hicks in the Capitol Chronicle focused on a data-point that is far too often overlooked. It seems that calling Republican-led states “Red” is entirely appropriate, because most of them are in the red.

(Before going into the details of the column, I want to note that the Chronicle is part of an encouraging trend here in my city–a trend that is also showing up elsewhere. As I have repeatedly noted, the dearth of local reporting has had a very negative effect on democracy and the sense of community. In city after city, local newspapers have either disappeared or–as in Indianapolis–turned into “ghost papers” that no longer cover the sorts of things citizens need to know about their local institutions. Recently, however, we’ve seen several new media entrants that propose to fill the gap–including Axios Indianapolis, The Mirror, State Affairs, and the Chronicle.) 

But back to Hicks. He begins this particular column by noting that from the end of World War II up until about 1980, economic differences among the states bore little relationship to the partisanship of those states.

In fact, if you picked just one variable that best measured prosperity — per capita income — the was no correlation with political party. There were rich states led by Republican and Democratic governors and poor states led by both as well.

Over the past 40 years, that changed. Today, 19 of the 20 richest states are solidly Democratic, while 19 of the 20 poorest states are solidly Republican. It is clear that the GOP has become the party of poor states, while the Democrats have become the party of prosperous states.

The question, as usual, is “why?”

One big culprit is that political parties changed, erasing regional differences. Up until the late 90’s, there were conservative Democrats and liberal Republicans. That is no longer the case, so as states began to align with national politics platforms.

This trend more extreme today. Even races for local government tend to be highly nationalized. State and local issues are often ignored in primary or general elections. This homogeneity of national politics naturally tends to cause parties to have success in places that are more similar – polarizing states between parties.

A second trend is the sorting by politics increasingly effects household location choice. Though much sorting happens at the local level, the nationalization of politics means that state borders now effect household location choice.

The nationalization of politics means that each party has been staking out positions that appeal to majorities in key states. In this way, politicians are choosing their voters. The sorting of households reflects voters choosing political landscapes they prefer, on economic, fiscal and cultural issues. This trend appears to be accelerating.

That last paragraph reminded me of the demographic observations in Bill Bishop’s 2009 book The Big Sort.

Hicks acknowledges that there is never one simple reason for economic performance, but he also hones in on what appears to be the largest cause of the disparity between Red and Blue states: public education.

The cause of the economic divergence is because human capital — education, innovation and invention — replaced manufacturing and movement of goods as the primary source of prosperity. This means that places that grow will necessarily need to develop and attract more human capital. But the educational policies pursued by both parties are vastly different, with very different outcomes.

The GOP has largely tried to adopt broad school choice, and cut funding to both K-12 and higher education. The Democrats have largely eschewed school choice, but amply funded both K-12 and higher education. Seventeen of the 20 best funded states are Democratically controlled and 17 out of the 20 lowest funded states are GOP strongholds. Educational outcomes between these states are stark.

Educational attainment differences alone explain about three quarters of the difference in per capita income between states….

Voucher programs haven’t just failed to generate superior test scores. They’ve impoverished our critically important public school systems –and kept Red states like Indiana poor. As Hicks concludes,

Economists have been saying this for three decades, without any effect in poor states. The prognosis is simply that poor states — like Indiana — are going to get poorer for decades to come. While rich states will grow richer.

Not that Indiana’s terrible legislature will take note….

I recently discussed the abysmal effects of voucher programs on the podcast co-hosted by Morton Marcus and John Guy: Who Gets What? 

If you have some time, tune in.

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