Individuals looking for income growth might want to consider moving to Republican territory. USA Today finds that income in red states has grown faster than it has for those in blue states.
However, individuals considering the move might want to be prepared to make career or lifestyle changes if they plan to cash in.
Blue states are those leaning toward a Democratic vote, while red states are those likely to vote Republican.
Editor's Note: See the Disturbing Charts: 50% Unemployment, 90% Stock Market Crash, 100% Inflation
According to USA Today, which evaluated revised income data released this week by the Bureau of Economic Analysis, personal income, adjusted for inflation, in 23 red states has risen 4.6 percent since the recession began in December 2007, while income is up just 0.5 percent in 15 blue states and Washington D.C. during that time.
Individuals in a dozen swing states, which could vote either way, have seen their income inch up by 1.4 percent during that 4 ½ year period, USA Today adds.
One should not confuse the rate of growth with the actual concentration of wealth, however. Blue states might be recovering slower from the economic downturn, but they are more affluent than the red states are. They are also more populous.
Furthermore, those considering the seemingly positive results in red states should note the big income-growth drivers, which USA Today says are energy and government benefits, such as food stamps.
Energy states such as Alaska, Texas and Oklahoma are Republican and have seen some of the nation's highest rates of growth. Added to these is North Dakota, where there is an oil boom and where the income expansion is by far outpacing all other states.
The Chicago Tribune says all states posted personal income gains during the second quarter of this year, with North Dakota and South Dakota having the biggest increases, according to Chris Mauro of RBC Capital Markets.
But one should not let the energy states completely distort the picture. Several red states had negative growth or income expansion below 1 percent.
“Poor, southern red states depend heavily on government transfers for income and benefited from increases in Medicaid and other federal programs,” USA Today reports.
However, erasing political division, it appears that the nation is experiencing growth.
Following an upward revision in aggregate nominal state personal income growth for the first quarter, Mauro noted that the “new personal income data does serve as another indicator, along with better state housing and tax revenues, that state economies are slowly on the mend,” according to the Tribune.
Editor's Note: See the Disturbing Charts: 50% Unemployment, 90% Stock Market Crash, 100% Inflation
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