The New Economy and the Trump Rump

In Economy, Voting On

 

Amazon’s headquarters criteria perfectly illustrate the forces behind that divergence. Businesses in the new economy want access to large pools of highly educated workers, which can be found only in big, rich metropolitan areas. And the location decisions of companies like Amazon draw even more high-skill workers to those areas.

In other words, there’s a cumulative, self-reinforcing process at work that is, in effect, dividing America into two economies. And this economic division is reflected in political division.

In 2016, of course, the parts of America that are being left behind voted heavily for Donald Trump. News organizations responded with many, many, many profiles of rural Trump supporters sitting in diners.

But this was, it turns out, fighting the last war. Trumpism turned America’s lagging regions solid red, but the backlash against Trumpism has turned its growing regions solid blue. Some of the reporters interviewing guys in diners should have been talking to college-educated women in places like California’s Orange County, a former ultraconservative stronghold that, come January, will be represented in Congress entirely by Democrats.

Why have lagging regions turned right while successful regions turned left? It doesn’t seem to be about economic self-interest. True, Trump promised to bring back traditional jobs in manufacturing and coal mining — but that promise was never credible. And the orthodox Republican policy agenda of cutting taxes and shrinking social programs, which is basically what Trump is following in practice, actually hurts lagging regions, which depend a lot on things like food stamps and disability payments, much more than it hurts successful areas.

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