Income Distribution By Political Party

Taxes may increase growth if they finance public services but reduce growth when used to redistribute income between classes.

Income distribution by political party. The different social classes have different preferences. My model assumes in contrast that income distribution. In this regard note that in interpreting their empirical evidence alesina and rodrik 1994 and persson and tabellini 1994 implicitly assumed that income distribution is an exogenous variable. If voters in 2000 were voting as if real average income were only that of 1960 partisanship would have swung strongly in the republicans favor.

Young men 37 are significantly more likely than young women 28 to believe that the gap is more the result of certain people working hard and making smart choices. This paper examines the determination of the rate of growth in an economy in which two political parties each representing a different social class negotiate the magnitude and allocation of taxes. High income refers to households in the top 20 percent which is over. The political balance is even in areas with 50 000 to 500 000 people and then turns decidedly in the republicans favor at population levels below 50 000.

Joe on the other hand only makes 30 000 a year and needs to save all that he can in order to put his son through college and thus cannot contribute as much as he would like. 37 in fact they see income distribution as the main determinant of the political structure. We also find that the two party system has adjusted to remain competitive in spite of the large increases in real income on the last half of the twentieth century. 18 to 24 year olds 35 are more likely.

In addition to these differences by political party the root causes of income disparity also result in cleavages by gender and age. In income and election terms in short the democrats are the party of the two extremes. Political party negotiations income distribution and endogenous growth. Populated areas tend to have a higher concentration of minorities who overwhelmingly vote democrat and often have large universities where democrats also hold a commanding majority.

Meanwhile the republicans though led by oligarchs and governing for the rich are the party of the. Rob has an income of 200 000 a year with a large savings account and is willing to donate a substantial portion of this year s income to candidate r.