Tuesday, April 3, 2018
Why Poor States In US Are Getting Poorer
Paul Krugman explains why poor rural states have been getting poorer while rich urban states are getting richer. The convergence process in which poor rural states, like Mississippi, had been gaining on rich states, like Massachusetts, has been reversed. The reversal is partially due to broad economic changes; the richer states have been getting richer because the high paying jobs require an educated work force. On the other hand, government policies in poor states like Oklahoma and Kansas have exacerbated their relative impoverishment. They have cut taxes and reduced spending on education and other programs that would have increased opportunities for the poor. They have even refused to take federal funds for healthcare services because they have an anti-government bias. In other words, Republican ideology is partially responsible for their economic decline. Trump promised to improve their economic circumstances but he has taken steps which will accelerate their economic decline.