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Pro-Trump Areas Worse Off Than Ever

Economics professor Anthony W. Orlando writes Is Trump country really better off under Trump? No. It’s falling further behind:

Two years have passed since Donald Trump made his famous campaign promise in disaffected regions across the country: “We are going to start winning again!” For many voters who felt that they had lost ground in recent decades, the candidate argued, a vote for him would be rewarded with renewed prosperity and prominence.

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By most measures, my latest research shows, Trump counties — and especially counties with higher proportions of Trump voters — continue to fall farther behind the rest of the country economically. The story of our economy, like the story of our politics, continues to be a story of division and divergence.

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Consider the stark differences in basic measures of local economic performance — employment and housing prices — between counties where the majority of votes were cast for Donald Trump and counties where the majority voted for Hillary Clinton. The average Clinton county employs seven to eight times as many workers as the average Trump county, with nearly double the market value per single-family home. In part, this difference reflects the higher population density of the urban areas, which voted disproportionately for Clinton. But as my analysis shows, it has been growing over time, as the Clinton counties outperform their Trump counterparts.

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Using a standard statistical technique called “difference-in-differences,” I estimate the difference between Trump and Clinton counties before and after the election and show whether the difference … differs. In other words, I look at whether the economic performance gap narrows. The answer: No. Statistically, there appears to be no significant improvement in job growth. The gap in housing price growth actually widens. In fact, the larger the Trump electorate and the larger the degree of Trump support, the worse the county’s economic performance.

See Orlando, Anthony W., Where’s the Winning? (October 16, 2018). Available at SSRN: https://ssrn.com/abstract=3267509 or http://dx.doi.org/10.2139/ssrn.3267509.

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