In an era of deepening political divides, it is rare to find an issue that transcends party lines.

Most policies find rhetoric on either side of the divide showing why their party has the right answer to address a litany of issues facing Americans.

Both sides fight over whose ideas are best to restore the American Dream. However, a new report published at the Archbridge Institute, titled “Social Mobility in the 50 States,” shows that the solutions to our problems can be found in red and blue states. Social mobility is the ability to climb the income ladder and build better lives. This report quantifies the barriers to mobility in place in each of the states. If we want to lift barriers and lives, Republicans and Democrats must learn from each other.

The rankings are eye-opening. At the top of the list is Utah, a clear “red” state; but in second is Vermont, a deep-blue state that votes for Senator Bernie Sanders. Other red states like Idaho and South Dakota appear in the top 10 but so do more predominantly blue states like Colorado and Minnesota.

At the bottom? A mix again: Red states like Louisiana, Mississippi, and Alabama are the bottom three, but New Jersey is 43rd and New York is 47th. No political party has a monopoly on success or failure in addressing mobility.

The four pillars evaluated in our report are the environment for entrepreneurship and economic growth, education quality, institutions and rule of law, and social capital. Institutions and rule of law measure aspects of the legal system such as the quality of state liability systems, tort costs, and ways in which state agencies proactively harm their citizens (civil forfeiture and corruption). Social capital is largely qualities of “civil society,” such as community involvement and engagement, as well as charitable acts in a state.

The environment for entrepreneurship is predominantly dominated by red states like Wyoming, Idaho, and Utah. At the bottom is a blend of red (West Virginia and Arkansas) and blue (Hawaii and New Jersey) states. Legal system and rule of law quality is largely highest in blue states like Connecticut, Maryland, and Maine; but the bottom two states are one red (Louisiana) and one blue (Illinois). Education quality and skills development comes down to schooling (K-12 and post-secondary education) but also education from family engagement, and the top states are a blend of red (Iowa and North Dakota) and blue (Colorado and Washington).

Or consider California, which ranked 40th overall in our index. While the state performed above average (22nd) in terms of legal institution quality, California wasn’t so golden on the issues of entrepreneurship and growth (41st) or social capital (44th). It gets even worse in terms of taxes and costs (48th) or regulation (49th), meaning that there is good, bad, and ugly to report.

Poor performers—both Republican and Democrat—erect artificial barriers like excessive regulations and fail to address natural ones like weak family and community structures.

Given that our index correlates strongly with measures of income mobility, inequality, and poverty, learning the right lessons from each other pays dividends for its citizens.

Continue reading at the Southern California News Group.

 

Gonzalo Schwarz is President and CEO at the Archbridge Institute. Gonzalo focuses on researching and writing about the American Dream, social mobility, the economics of human flourishing, economic development, and entrepreneurship. He is the author of the institute’s "American Dream Snapshot” and editor of two publications focused on social mobility in Europe and Latin America. Gonzalo has an M.A. in economics from George Mason University and a B.A. in economics from the Catholic University of Bolivia. You can follow his Substack, "Living the Dream," where he writes about the American Dream.

Justin Callais, PhD, is Chief Economist at the Archbridge Institute. He leads the institute's "Social Mobility in the 50 States" project and conducts original research on economic development, upward mobility, and economic freedom. Dr. Callais received his Ph.D. in economics from Texas Tech University and his B.B.A. in economics from Loyola University New Orleans. He serves as an economic consultant at Callais Capital Management, and he is co-editor of Profectus Magazine, an online publication dedicated to human progress and flourishing. In addition, he publishes a regular newsletter on Substack titled "Debunking Degrowth."

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