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INCOME INEQUALITY: THE FAIREST STATES ARE RED STATES. THE UNFAIR STATES ARE THE BLUE STATES. HOW MIGHT THIS AFFECT THE POTUS 2020 ELECTION?

Back on November 19, 2019, the U.S. News and World Report published a piece by their senior writer for economics, Andrew Soergel, titled 10 Best States for the Middle Class.

No where does Soegel define what is Middle Class. Luckily for you, I defined what the middle class means back on May 06, 2014 in my work titled, BUT WERE YOU EVER IN THE MIDDLE CLASS? In short, to be in the middle class, you must own your primary residence free and clear and likely, you must derive at least 51% of your income from an investment from whatever source such as your own business or perhaps stock dividends.

Well, looking at their slideshow data, their ranking seemed off to me. So, I decided to delve into data. Surprisingly, I found out something else.




Income Inequality, Ranked from the Worst to Best 



Surprisingly, the worst states in the USA for income inequality are states where voters voted for Hillary Clinton in the 2016 presidential election. 

Considering DC as a state with its three electoral votes, of the top ten states with the highest income inequality, the voters in eight of those states overwhelmingly voted for Hillary Clinton (i.e., Hillary Clinton won at least 55% of the vote).




Even more surprisingly,  it is the Red States, the GOP states, the states whose voters voted for President Trump in the 2016 election, which are the states with lesser income inequality. Said in the parlance of the social democrats, these are the fairer states.

In short, the states that have voters favoring Democrats are the states, which have the highest income inequality. 


The Dem States Strive to Equalize the 99% "Peasant Class"

So what does a strong Dem state look like? A strong Dem state has great disparity between the top one percent and the remaining ninety-nine percent. Such states have a higher share of renters for houses, townhouses and condominiums, not counting apartment buildings.

The full-time equivalent to an hourly wage for welfare payments falls not-too short of being ninety-percent of the average private income wage once adjusted for the cost of living. In short, strong Dem states, universal basic income not only is already here, but also, it is not basic, but nearly the equivalent of those who work. Thus, in strong Dem states there is little incentive to work for many. 


From each according to ability to each according to greed is already in action in strong Dem states.








The Red States are the Middle Class States

The highest true house ownership, that is house deeds held free-and-clear unencumbered by mortgages are the GOP states. The strongest GOP states, i.e., states whose voters overwhelming voted for President Trump, have the highest house ownership. The percent of renters seems to be normal whether in strong GOP states or weak ones. 

Not surprisingly, welfare hourly payments are lower than in Dem states, by nearly two to four dollars from weak Dem and strong Dem states respectively.

The biggest surprise is how much less income inequality exists in GOP Red states. Sure, there is natural income inequality yet the difference is nearly $6.50 less than compared to strong Dem states for the dollars earned by the top one percent for each dollar earned by the remaining ninety-nine percent.


Strategies to Win Elections

Whether Democrats or Republicans, their respective focus should be to turn their weakly held states into strongly held states by mirroring the conditions of their strongly-held states.

The Republicans should focus on policies that will lift median household income slightly more. This should have the knock-on effect of upping true house ownership as found in strong Red states. As well, to lift median household income, the GOP in weak GOP states should push to increase welfare spending nearly ten percent, which is not a GOP thing to do.

Like their GOP opponents, the Democrats should increase welfare spending in weak Dem states, but unlike their GOP opponents, the Democrats would need to up spending an eye-popping 42%.

Who Has the Weaker Hand

The Democrats in the weak Dem states have the weaker hand. Already, their median household incomes are higher than all other states. As well, their public sector wages are pennies from the top.

The Dems would need to gut the economies in weaker states so as to equalize the productive of the ninety-nine while paying the welfare collectees of the ninety-nine much more.

Anyone with good sense already sees that is a recipe for disaster.

The Republicans merely need to talk to those still paying mortgages with promises of policies that will lift their incomes so they can join the ranks of true house owners. That should be a focus for Republicans whether in weak Dem states or in weak GOP states.


Robbery


Perhaps this comes as a surprise to criminologists and Democrat voters, the strong Dem states have the highest robbery rate, a rate that is 62% higher than strong GOP states. Strong Dem states attract and retain the no skilled / low skilled. Even with welfare payments that nearly match the private sector full-time equivalent hourly wage average, robbery is a way to supplement welfare payments. 

Methodology Notice

Unlike others, I include earnings of educational services, health care and social assistance as well as religious, grant-making, civic, professional, and similar organizations in the public sector for wage calculations and employment head count precisely because most of those are subsidized heavily by government and, in effect, are extensions of the United States Congress through its agencies as well as the various states.





To comment about this story or work of the True Dollar Journal, you can @ me through the Fediverse. You can find me @johngritt@freespeechextremist.com

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