Two Americas

I've been trying to dial down MindBlog's mention of our current domestic turmoil and debate, but I can't resist passing on this clip from Krugman's recent piece that gives one succinct summary of our quandry:

Since the 1980s America has experienced growing regional divergence. We have become a knowledge economy driven by industries that rely on a highly educated work force, and firms in those industries, it turns out, want to be located in places where there are a lot of highly educated workers already — places like the Bay Area.

Unfortunately, most of these rising knowledge-industry hubs also severely limit housing construction; this is true even of greater New York, which is much denser than any other U.S. metropolitan area but could and should be even denser. As a result, housing prices in these metros have soared, and working-class families, instead of sharing in regional success, are being driven out.

The result is that there are now, in effect, two Americas: the America of high-tech, high-income enclaves that are unaffordable for the less affluent, and the rest of the country.

And this economic divergence goes along with political divergence, mainly because education has become a prime driver of political affiliation.

It may seem hard to believe now, but as recently as the early 2000s college graduates leaned Republican. Since then, however, highly educated voters — who have presumably been turned off by the G.O.P.’s embrace of culture wars and its growing anti-intellectualism — have become overwhelmingly Democratic, while non-college-educated whites have gone the other way.

As a result, the two Americas created by the collision of the knowledge economy and NIMBYism correspond fairly closely to the blue-red division: Democratic-voting districts have seen a big rise in incomes, while G.O.P. districts have been left behind: