Diverging Incomes: The New Normal?
It has been well-publicized that analysis of income trends over the last several years shows that those with the highest incomes have seen gains while those with the lowest incomes have seen stagnation or even losses. The result of these trends is a large and growing gap between the two groups. In a recent analysis, two liberal-leaning research and advocacy groups examine the results on a state-by-state basis and propose a host of state policies that might reverse or at least mitigate this trend. That said, economics tells us that income is most efficiently and effectively redistributed at the national level of government, so state actions can only go so far. Moreover, many of their recommendations run contrary to recent state actions and face an additional hurdle of scarce government resources.