Edward Conard

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How Much Longer Can Vote Blue No Matter Who! Last?

Thomas Edsall New York Times
Date Posted:
February 10, 2023
Is Database:
Database

@ThomasEdsall The Democratic coalition faces instability as college-educated whites’ interests diverge from the working class, with 67% of the white working class voting for Trump in 2020, driven by racial group animus.

@ThomasEdsall The Democratic coalition faces instability as college-educated whites’ interests diverge from the...
The Democratic coalition faces instability as college-educated whites' interests diverge from the working class. From 1984 to 2020, the % of white Democrats identifying as liberal more than doubled from 29.8% to 68.5%, while Black and Hispanic Democrats saw smaller increases. This shift highlights a growing divide within the party, as college-educated whites often prioritize social issues over economic policies that benefit the working class. In 2020, 67% of the white working class voted for Trump, reflecting a shift towards Republicans driven by racial group animus. The Democratic coalition's sustainability is challenged by these ideological differences, with college-educated whites focusing on social signaling rather than policies that address economic disparities. Despite these tensions, Democrats remain the majority party, having won the popular vote in most presidential elections since 1992, but the coalition's future depends on reconciling these divergent priorities.

Ryan Enos“…College-educated whites, especially those with higher incomes, are not clear coalitional partners for anyone — they don’t favor economic policies, such as increasing housing supply or even higher taxes on the rich, that are beneficial to the working class, of any race. And many college-educated whites are motivated by social issues that are also not largely supported by the working class, of any race. It’s not clear that, with their current ideological positions, socially liberal and economically centrist or rightist college-educated whites are natural coalition partners with anybody but themselves. My sense is that much of the college-educated liberal political rhetoric is focused on social signaling to satisfy their own psychological needs and improve their social standing with other college-educated liberals, rather than policies that would actually reduce racial gaps in economic well-being, civil rights protections, and other quality of life issues….”

Thomas Edsall, "How Much Longer Can ‘Vote Blue No Matter Who!’ Last?,"New York Times, February 1, 2023, https://www.nytimes.com/2023/02/01/opinion/democratic-party-coalition.html

How Much Longer Can ‘Vote Blue No Matter Who!’ Last?

Over the past four decades, the percentage of white Democrats who identify themselves as liberal has more than doubled, growing at a much faster pace than Black or Hispanic Democrats.

In 1984, according to American National Election Studies data, 29.8 percent of white Democrats identified as liberal; by 2020, that percentage grew to 68.5 percent. Over the same period, the percentage of liberals among Black Democrats grew from 19.1 percent to 27.8 percent and among Hispanic Democrats from 18 percent to 41 percent.

This shift raises once again a question that people have been asking since the advent of Reagan Democrats in the 1980s: What does it mean for a party that was once the home of the white working class to become a coalition of relatively comfortable white liberals and less-well-off minority constituencies?

I posed this and other questions to a range of scholars and political strategists, including William Galston, a senior fellow at Brookings, who recently cited similar (though not identical) trends in Gallup data. In an essay last month, “The Polarization Paradox: Elected Officials and Voters Have Shifted in Opposite Directions,” Galston wrote: “In 1994, white, Black and Hispanic Democrats were equally likely to think of themselves as liberal. But during the next three decades, the share of white Democrats who identify as liberal rose by 37 points, from 26 percent to 63 percent, while Black and Hispanic Democrats rose by less than half as much, to 39 percent and 41 percent, respectively.”

Galston argued in an email that Black Democrats have assumed an unanticipated role in the party: “African Americans are now a moderating force within the party. It was no accident that they rallied around the most moderate candidate with a serious chance of winning the nomination in 2020, or that the leader of the pro-Biden forces took the lead in rejecting the “defund the police” slogan.”

The coalition of upper-middle-class liberals and minority voters, Galston wrote, “has been sustainable because the former believe in the active use of government to fight disadvantage of various kinds and are willing, within limits, to vote against their economic self-interest.”

Julie Wronski, a political scientist at the University of Mississippi, wrote back by email: “Underlying the liberal shift among white Democrats is their tendency to hold more liberal racial attitudes. In the Voter Study Group’s Racing Apart report, the percentage of white Democrats that hold the most liberal positions on the standard racial resentment measure has increased over the last decade to such a large extent that their racial resentment views match those of Black Democrats.”

The Democratic Party, Wronski continued, has become, “a coalition of racial minorities (especially Blacks) and whites who are sympathetic to the inequities and challenges faced by minority groups in America. Racial identities and attitudes are the common thread that link wealthier, more educated whites with poorer minority constituencies.”

The Democrats’ biracial working-class coalition during the mid-20th century, in Wronski’s view, “was successful because racial issues were off the table.” Once those issues moved front and center, the coalition split: “Simply put, the parties are divided in terms of which portion of the working class they support — the white working class or the poorer minority communities.” The level of educational attainment is the line of demarcation between the two groups of white voters.

By 2020, the white working class — defined by the Federal Reserve of St. Louis as “whites without four-year college degrees” — voted for Donald Trump over Joe Biden, 67 to 32 percent, according to network exit polls. In the 2022 election, white working-class voters backed Republican House candidates at almost the same level, 66 to 32 percent.

The shift of non-college white working-class support to the Republican candidates, Wronski wrote, “was driven by racial group animus. Trump was particularly able to attract members of the white working class on the basis of racial (and other) group sentiments — with those disliking minority groups being uniquely attracted to Trump, in a continuation of the division of the working class along racial lines.”

There are those who argue, however, that the contemporary Democratic coalition is more fragile than Wronski suggests. Ryan Enos, a political scientist at Harvard, emailed to say, “If you’re a Democrat, you might worry that the coalition is not stable.”

Over the long haul, Enos wrote: “College-educated whites, especially those with higher incomes, are not clear coalitional partners for anyone — they don’t favor economic policies, such as increasing housing supply or even higher taxes on the rich, that are beneficial to the working class, of any race. And many college-educated whites are motivated by social issues that are also not largely supported by the working class, of any race. It’s not clear that, with their current ideological positions, socially liberal and economically centrist or rightist college-educated whites are natural coalition partners with anybody but themselves.”

Enos went so far as to challenge the depth of elite support for a liberal agenda: “My sense is that much of the college-educated liberal political rhetoric is focused on social signaling to satisfy their own psychological needs and improve their social standing with other college-educated liberals, rather than policies that would actually reduce racial gaps in economic well-being, civil rights protections and other quality of life issues.”

Paul Begala, a Democratic strategist, is an explicit critic of the left wing of the party. “It is plain to me that the Democrats’ greatest challenge is the progressive left,” Begala wrote in an email: “Pew Research shows they are the most liberal, most educated and most white subgroup in the Democratic coalition. They constitute 12 percent of Democrats and those who lean Democrat — which means 88 percent of us are not on their ideological team.”

In contrast, Begala continued: “Black voters are both the most loyal Democrats and the most sensible, practical, strategic and moderate voters. This is why it was important, politically and even morally, for President Biden to move the African-American-rich South Carolina primary ahead of overwhelmingly white Iowa and New Hampshire.”

In the November 2021 study of the composition of the Democratic Party that Begala referred to, Pew Research reported: “The progressive left makes up a relatively small share of the party, 12 percent of Democrats and Democratic-leaning independents. However, this group is the most politically engaged segment of the coalition, extremely liberal in every policy domain and, notably, 68 percent white non-Hispanic. In contrast, the three other Democratic-oriented groups are no more than about half white non-Hispanic.”

This disproportionately white wing of the party, as I previously discussed, provided crucial support for Alexandria Ocasio-Cortez and Ayanna Pressley when they ran for Congress in 2018, putting them over the top in their first primary victories over powerful Democratic incumbents.

A variety of forces is straining the center-left coalition.

Bruce Cain, a political scientist at Stanford, replied by email to my inquiries: “Many white liberals live in enclaves of affluence, sheltered from the economic and personal insecurity of the low-income communities. They are more strongly motivated by identity issues around gender and race but are less concerned with poverty or economic insecurity issues than liberals in the sixties.”

As a result, in Cain’s view: “Parts of the Democratic coalition are talking past each other and sometimes clashing. In the case of climate change, white liberals want to accelerate the adoption of electric vehicles that most low-income nonwhites cannot afford. During Covid, affluent white liberals could work at home and have food delivered to them by nonwhite workers who left the food packages at their doorstep or who had to go to work and suffer higher rates of illness.”

When all said and done, “White liberals are still a better deal for nonwhites than the Republican Party,” Cain contended, “but it is revealing that the African Americans in South Carolina preferred Biden to Sanders or Warren.”

The liberalism of white Democrats cuts across a wide range of issues. Brian Schaffner, a political scientist at Tufts, cited data collected by the Cooperative Election Study: “In 2020 white Democrats scored similarly low on racial resentment as Black Democrats. And white Democrats actually have significantly lower levels of sexism than Black or Hispanic Democrats. In the 1980s and 1990s, the Democratic Party was indeed fairly divided on issues of race in particular, but that no longer seems to be the case.”

Now, Schaffner continued, “white Democrats appear to be the most liberal group in the party on a range of issues, including immigration, climate, crime/policing, abortion, health care, gun control and economic/social welfare.”

I asked James Stimson, a political scientist at the University of North Carolina-Chapel Hill, how the meaning of “liberal” changed over the past 40 years. He replied: “The term has become infused with racial content. That may be the key to the conversion of educated suburban voters into liberals and Democrats. Trump’s open racism must surely have added greatly to the new meaning of liberalism. Perhaps the L-word has become a way to say, “I am not a bigot.””

Along similar lines, Viviana Rivera-Burgos, a political scientist at Baruch College of the City University of New York, pointed out how much the liberal agenda has transformed in a relatively short time: “Issues like abortion, same-sex marriage and L.G.B.T.Q.+ rights and immigration have become important ideological cleavages in the past 40 years or so. Being a liberal today means you’re most likely pro-choice, pro-same-sex marriage, pro-expansion of L.G.B.T.Q.+ rights and anti-restrictive or punitive immigration laws. These issue positions couldn’t be inferred based on someone’s ideology alone 40 years ago.”

Lanae Erickson, a senior vice president at Third Way, a centrist Democratic group, argued in an email that there is a danger of overemphasizing the liberal tilt of the Democratic electorate: “Although the percentage of Democrats calling themselves liberal has grown over the past three decades, it still remains true that only about half of self-described party members identify that way — in contrast to Republican voters, about 80 percent of whom call themselves conservative. So Democrats have long had and continue to have a more ideologically diverse coalition to assemble, with nearly half of the party calling themselves moderate or conservative.”

Erickson did not hesitate, however, to describe the party’s educated left wing as, “overrepresented in the media, on Twitter and in positions of power. That group is loud and more culturally liberal, though they often purport to speak or act on behalf of communities of color. Meanwhile, the African American and Latino voters who deliver victories to Democratic candidates in nearly every race have remained much more ideologically mixed.”

“If we continue to let white liberals on Twitter define what it means to be a Democrat,” Erickson warned her fellow Democrats, “we are going to continue to alienate the voters of color who are essential majority makers in our coalition. While the Twitterati wants to ‘Defund the Police,’ communities of color want their neighborhoods to be safe — both from police violence AND violent crime.”

To build her case, Erickson cited that role of minority voters in the last New York City mayoral election: “They elected Eric Adams and rejected the far-left candidates whose voting blocs were made up primarily of white liberals,” noting that “Adams outpaced Maya Wiley by 23 points with Black voters and 10 points with Hispanic voters.”

In local elections in 2021, Erickson continued, Black voters “rejected a measure in Minneapolis, where George Floyd was killed, to defund the police: According to ward-level data, the predominantly Black Wards 4 and 5 rejected the Minneapolis ballot measure by wide margins (over 60 percent voted no), while predominantly white wards drove the measure’s support.

Erickson suggested that the culturally liberal tilt of the party’s left wing was a factor in declining minority support: “Case in point: Democrats dropped nine percentage points with non-college voters of color between 2012 and 2020, falling from 84 percent support in 2012 to 75 percent in 2020, according to Catalist. This was most pronounced with non-college men of color who went from 81 percent Democratic in 2012 to 69 percent in 2020.”

These losses reflect “a divergence in priorities and values,” Erickson wrote, citing poll data showing that, “while Democratic primary voters say hard work is no guarantee of success, Black voters disagree — saying most people can get ahead in America if they work hard — and that by a two-to-one margin, Black Americans say it is necessary to believe in God to have good morals. Democratic primary voters of all races disagree with that statement by similar margins.”

While the party is divided on values and priorities, Erickson pointed out that Democrats in Congress have reached general agreement on many issues that were highly divisive in the past: “There is only one pro-life Democrat left in Congress, and today’s moderate Democrats are loudly supportive of reproductive rights. There are no more N.R.A.-endorsed Democrats on the Hill, and if gun safety legislation were brought up tomorrow, every single Democrat in federal office would support it. Similarly, every Democrat not only supported the Respect for Marriage Act but would’ve likely gone further to explicitly codify marriage equality into law at the federal level.”

The major intraparty conflicts that remain, Erickson wrote, “are concentrated around two big questions. One is a process question: Do you believe progress is achieved by incremental steps or revolutionary change? The other is a values question: Do you believe that, with some basic policy reforms, our economic system can deliver a good life to those who work hard in this country, or rather that it needs to be torn down and fundamentally rebuilt from the ground up?”

The transition from a partisan division among white voters based on economic class to one based on level of educational attainment has had substantial consequences for the legislative priorities of the Democratic Party.

Frances Lee, a political scientist at Princeton, pointed out in an email that “the class base of the parties has atrophied” with the result that “the party system in the U.S. simply does not represent that ‘haves’ against the ‘have-nots.’ Both parties represent a mix of haves and have-nots in economic terms.”

Because the Democratic Party must hold down “a coalition of upper-income whites and minority constituencies across all income groups,” Lee wrote, party leaders, “are likely to prioritize issues that do not pit the well-off against the poor very directly, such as the rights agenda (e.g., voting rights, abortion, gays and lesbians) and climate/environment. Democrats in government are unlikely to genuinely prioritize the economic interests of low-income and working-class voters, because those voters simply do not represent a majority of their party’s coalition.”

As an example, Lee wrote, “Current Democrats are much more concerned about forgiving student loans than about the majority of voters who will not or did not go to college.”

What, then, is likely to happen in the Democratic ranks?

The reality, as summed up by Ryan Enos, is that for all their problems, “The Democrats are clearly the majority party and may be experiencing an unparalleled period of dominance: Since 1992, a period of 30 years, Republicans have only won a majority of popular presidential votes once, in 2004, and that was during the extraordinary time of two overseas wars.”

For the moment, the Democratic coalition — with all its built-in conflicts between a relatively affluent, well-educated, largely white wing, on the one hand, and an economically precarious, heavily minority but to some degree ascendant electorate on the other — remains a functional political institution.

“In this sense,” Enos told me, “it’s important not to overstate the damage that some perceive liberalism as having done to the Democrats’ electoral fortunes.”

Ed Comment: “if they were merely signaling, they might say blue and vote red. I strongly suspect they are “signaling” to themselves. I believe women in general feel horribly guilty and often sooth their guilt by voting to give away other people’s money. I also think pundits might be overattributing some anti trump sentiment to non trump factors. I know lots of never trump republicans. “

  • Politics
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Showing 187 database articles primarily about Politics

Who Sees Themselves as Working Class?

AI Summary. 60% of U.S. adults identify as working class, including half of college graduates and upper-income earners, making the label broadly adopted across economic lines rather than confined to lower-income or blue-collar workers.

Steven Shepard, Hannah Hartig, Andy Cerda and Jocelyn Kiley Pew Research Center
Date Posted:
September 1, 2026
Is Database:
Database

60% of Americans say “working class” describes them “extremely” or “very” well. Republicans are more likely than Democrats to identify as working class – strikingly 61% of Republicans who have a family income of at least $155,600 identify as working class, compared to 38% of such Democrats.

Does working class identity reflect actual economic status or cultural values?

Core argument: Sixty percent of U.S. adults identify as working class, a label adopted across income and education lines — including half of upper-income Americans and half of bachelor’s degree holders — signaling the term has lost its traditional socioeconomic boundaries.

Most Americans think of themselves as “working class” today: Overall, 60% of U.S. adults say the term describes them well. And the identity is widely adopted by people across all income and educational groups – including half of both Americans who have a bachelor’s degree and those who are upper-income. Those working in blue-collar occupations are particularly likely to identify as working class (77%), [as are] a majority of those working in other occupations (61%). White adults are more likely than Black adults to identify as working class. About six-in-ten White (62%) and Hispanic adults (59%) overall view themselves as working class, as do roughly half of Black (54%) and Asian adults (52%).

Takeaways by Macro Roundup® AI

  1. Sixty percent of U.S. adults identify as working class, a label adopted across income and education lines — including half of upper-income Americans and half of bachelor’s degree holders — signaling the term has lost its traditional socioeconomic boundaries.
  2. Blue-collar workers identify as working class at the highest rate (77%), yet a majority of workers in other occupations (61%) claim the same identity, indicating occupational type is a weak predictor of class self-perception.
  3. White adults identify as working class at a higher rate (62%) than Black (54%) or Asian adults (52%), with Hispanic adults (59%) closely tracking the White share.

Related Articles:

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  • Political Representation Gaps and Populism — Surveys in 27 European countries show that MPs’ policy views generally match those of their voters on economic issues, but are systematically to the left on…
  • The DSA Sweet Spot: Highly Educated, Downwardly Mobile — Silver finds that the most liberal voters are highly educated and lower-income. Only 19% of Americans with a college degree had a household income of $60,000…
  • Politics
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    • Inequality

The Rise of Anger: Emotions and Policy Views

Eva Davoine, Stefanie Stantcheva, Thomas Renault and Yann Algan Harvard University
Date Posted:
August 20, 2026
Is Database:
Database

Davoine, et al. show that angry policy-related tweets among voters rose from 34% to 46% over 2013–2025. Angry posts got ~60% more retweets, and experiments that induced anger showed it can move views on trade, immigration, redistribution and climate.

Figure 6 illustrates the monthly evolution of anger among Democratic- and Republican-affiliated X [Twitter] users. Each line reports the share of sentences classified as expressing anger within each political affiliation, and the plotted series are shown as six-month moving averages. It shows that Republican voters start with a higher baseline level of anger at the beginning of the period (about 38% compared to 27% for Democrats). Anger rises sharply for both groups after the 2016 election, but much more among Democrats. As a result, the initial partisan gap is much smaller by 2019. Both series then plateau from 2019 to 2022. Among Democratic partisans, anger declines slightly after Biden’s election but remains well above pre-2016 levels. Republican anger continues to rise during the Biden presidency, reaching approximately 50% by 2025.

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  • Politics

The DSA Sweet Spot: Highly Educated, Downwardly Mobile

Nate Silver Silver Bulletin
Date Posted:
July 22, 2026
Is Database:
Database
Is Important:
Important

Silver finds that the most liberal voters are highly educated and lower-income. Only 19% of Americans with a college degree had a household income of $60,000 or less, but responders to a DSA survey were ~ twice as likely to fall into that category.

The US voters most likely to identify as “very liberal” are those with postgraduate degrees but lower-to-middle household incomes of $30K to $60K per year. This is very much also the sweet spot for the DSA. In the DSA’s most recent member survey in 2021, 80% of members aged 25 or older had bachelor’s degrees, but 45% had household incomes below $60,000 per year. This is unusual because education and income are usually substantially positively correlated. In the composite CES data, only 19% of Americans with bachelor’s degrees or higher had household incomes of $60K or below, while respondents to the most recent DSA survey [were twice as likely to fall into this category].

Related Articles:

  • America’s Support for Capitalism Has Declined Over Last Decade — American confidence in capitalism has fallen from 60% to under 50% over the last decade, while only 12% believe democracy is working well and just 35% believe the economy offers a fair path to prosperity.
  • Zero-Sum Thinking and the Roots of US Political Differences — Surveying a large US sample, Chinoy et al built an index of “zero-sum thinking” using four questions as to whether one group’s gains come at others’ expense…
  • Political Representation Gaps and Populism — Surveys in 27 European countries show that MPs’ policy views generally match those of their voters on economic issues, but are systematically to the left on…
  • Politics

America’s Support for Capitalism Has Declined Over Last Decade

AI Summary. American confidence in capitalism has fallen from 60% to under 50% over the last decade, while only 12% believe democracy is working well and just 35% believe the economy offers a fair path to prosperity.

Aaron Zitner Wall Street Journal
Date Posted:
July 9, 2026
Is Database:
Database

A new WSJ poll finds only 35% of Americans think the assertion that “if you work hard, you’ll get ahead” still holds. Only 42% of respondents aged 18–34 think capitalism is working very or somewhat well, relative to 56% of those 65 or older.

Is capitalism losing support among Americans?

Core argument: Capitalism approval fell 10 pts to 50% over the past decade, driving erosion in confidence across core American institutions.

Americans are losing confidence in two main pillars of society: capitalism and democracy. Just under half of Americans say capitalism is working very well or even somewhat well, down from 60% who said so about a decade ago, according to a new Wall Street Journal-NORC survey. Only 35% are even fairly sure that the nation offers people the ability to get good jobs and achieve the American dream. Confidence in the nation’s system of government is even lower. Only 12% say democracy is working very well or extremely well, and a mere 16% say average citizens have considerable influence on politics. Two-thirds of Republicans said they were very proud of American history, three times the share of Democrats who said so. And Republicans in the survey stood apart in their belief in American exceptionalism, the long-held idea that the U.S. is unique or superior among nations. Nearly half of Republicans said that America stands above all other countries in the world, compared with only 8% of Democrats and 13% of independents.

Takeaways by Macro Roundup® AI

  1. Capitalism approval fell 10 pts to 50% over the past decade, driving erosion in confidence across core American institutions.
  2. Only 35% believe the U.S. offers pathways to good jobs and economic mobility, down from prior confidence levels, leading to.
  3. Republicans express 3x greater pride in American history than Democrats (67% vs. 22%), with 48% of Republicans believing America surpasses.

Related Articles:

  • Life Under Two: Debt, Deficits, and the AI Discontinuity — Paul Kedrosky argues the American economy is undergoing a fundamental shift from > 3% mean annual real GDP growth to “life under two,” or below…
  • Zero-Sum Thinking and the Roots of US Political Differences — Surveying a large US sample, Chinoy et al built an index of “zero-sum thinking” using four questions as to whether one group’s gains come at others’ expense…
  • Political Representation Gaps and Populism — Surveys in 27 European countries show that MPs’ policy views generally match those of their voters on economic issues, but are systematically to the left on…
  • Politics

America Used To Be Exceptionally Patriotic. Now We're Below Average

AI Summary. American patriotism, measured by those "extremely proud" to be American, tracks closely with which party controls the presidency, with partisan gaps widening sharply over time. Republican pride swings ~14 points between administrations, while Democratic pride has collapsed from 58% to 14% across the same period.

Eli McKown-Dawson and Nate Silver Silver Bulletin
Date Posted:
July 8, 2026
Is Database:
Database

Gallup finds only 17% of Democrats are “extremely proud” to be an American, versus 30% of independents and 74% of Republicans – notable declines from 2005–2009, when 58% of Democrats/independents and 79% of Republicans were “extremely proud” to be an American.

Is American patriotism becoming a partisan identity rather than national sentiment?

Core argument: Democratic extreme pride fell 75% from 58% (2004–2008) to 14%, driving a 44-pt partisan gap vs. Republicans’ 74%, the widest.

During George W. Bush’s second term, an average of 58% of Democrats were extremely proud to be American according to Gallup, as was an identical share of independents — though Republicans were higher. The rough parity between Democrats and independents lasted through Barack Obama’s second term, but the share of extremely proud Democrats fell to an average of 30% during Trump’s first term and was just 14% in the most recent Gallup poll. Although Republicans are generally more patriotic, their opinions can shift based on who occupies 1600 Pennsylvania Avenue too. The share of Republicans extremely proud to be American fell from 79% on average during Bush’s second term to 60% during Biden’s term. What happened after Trump retook office? It jumped right back up to 74%.

Takeaways by Macro Roundup® AI

  1. Democratic extreme pride fell 75% from 58% (2004–2008) to 14%, driving a 44-pt partisan gap vs. Republicans’ 74%, the widest.
  2. Republican extreme pride dropped 24 pts from 79% under Bush to 60% under Biden, then rebounded 14 pts to 74%.
  3. Independents’ extreme pride collapsed from 58% parity with Democrats in 2008 to unmeasured levels, indicating depolarization of patriotic expression across.

Related Articles:

  • Zero-Sum Thinking and the Roots of US Political Differences — Surveying a large US sample, Chinoy et al built an index of “zero-sum thinking” using four questions as to whether one group’s gains come at others’ expense…
  • A Note on Factors Influencing Trust in Government — A Pew study finds that only 15% of Americans trust the Federal government to do what is right “most of the time,” down from ~75% in 1960. A secular drop…
  • Life Under Two: Debt, Deficits, and the AI Discontinuity — Paul Kedrosky argues the American economy is undergoing a fundamental shift from > 3% mean annual real GDP growth to “life under two,” or below…
  • Politics

Texas Is Becoming America Inc’s Centre Of Gravity

AI Summary. Texas leads all U.S. states in business investment and population growth, creating roughly 20% of net new jobs nationally from 2020 to 2025, and is on track to surpass California as the largest U.S. economy.

Economist Staff The Economist
Date Posted:
June 2, 2026
Is Database:
Database

According to CBRE, at least 184 American firms, including Tesla and Caterpillar, moved their headquarters to Austin, Dallas or Houston btw 2020 and 2025. During that period, Texas drove ~20% of all net job creation in the US.

Is Texas replacing California as America's economic powerhouse?

Core argument: Texas created ~20% of all net new U.S. jobs from 2020–2025, driving its emergence as the nation’s primary business investment.

On May 27th the shareholders of ExxonMobil approved a plan to cut its ties with New Jersey and reincorporate in Texas, where it has long had its headquarters. The oil giant is not alone. Texas is steadily establishing itself as America Inc’s new centre of gravity. No state receives more business investment or is adding more people to its population. From 2020 to 2025 it created roughly a fifth of all net new jobs in the country. It is only a matter of time before Texas overtakes California as the largest economy in America. Texas’s success should worry those in New York and California monitoring their tax take. At the same time it has spawned a raft of imitators. Legislators in North Carolina have passed a plan to get rid of its corporate-income tax by 2030. Tennessee has copied Texas’s strategy of offering firms shovel-ready mega-sites. Nevada is trying to launch its own business court.

Takeaways by Macro Roundup® AI

  1. Texas created ~20% of all net new U.S. jobs from 2020–2025, driving its emergence as the nation’s primary business investment.
  2. ExxonMobil’s reincorporation in Texas signals a broader corporate migration that leads to revenue losses for high-tax states like California and.
  3. Texas’s economic dominance positions it to surpass California’s GDP, prompting competitive tax and regulatory reforms across North Carolina, Tennessee, and.

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