Friday, April 15, 2005

Economic Trends - Publication Link

Dr. Goss and I publish a newsletter, under the auspices of the Creighton University College of Business and the School of Law. This issue covers the latest economic survey by Dr. Goss (covering a 12 state region), and pieces on tax reform, social security reform, and comparative economic and educational statistics for "red" and "blue" states (i.e., states voting for President Bush and Senator Kerry, respectively, during the last Presidential election.

A copy of the newsletter can be accessed here:
http://www.outlook-economic.com/ResearchAndNews/Newsletters/spring2005d.pdf


Edward A. Morse

1 comment:

Scott Gunem said...

It was a pleasant surprise to receive the Economic Trends newsletter in the mail today, and I thoroughly enjoyed the information-packed articles. Hats off to Professors Goss and Morse for their fine pieces.

I must take issue, however, with the claim in Exhibit 1 that red states boast more favorable demographic and economic profiles than the blue states. Arguably, one of the most important indicators of a state's economic well-being is its poverty rate; and the comparisons between the red and blue states are stark.

Eighteen states have poverty rates above the national average of 12.4 percent, according to the U.S. Census Bureau's State & County Quick Facts. Sixteen of these eighteen states are red states. In contrast, only two of the seventeen blue states have poverty rates above the national average.

The nine states with the highest poverty rates (MS, LA, NM, WV, AL, AK, KY, TX, OK) are all red states. Conversely, the eight states with the lowest poverty rates (NH, MN, CT, MD, NJ, WI, DE, MA) are all blue states.

Yes, the red states may be experiencing greater growth in personal income, but I would argue that the additional income is not reaching the most vulnerable residents of the red states. In my book, it is the blue states which exhibit superior economic performance.

I would welcome your thoughts.

Scott Gunem
Eau Claire, Wisconsin