The Proof Is In the Policies: How Democratic Economics Elevate Working-Class Lives
Part II: Where in the world do Democratic economic policies actually work?
In Part I, we took a deep dive into the track record of Republican economic strategies—deregulation, tax cuts, and privatization. The verdict? While these policies often benefit corporations and the wealthy, they have historically left working-class families worse off, leading to stagnating wages, underfunded public services, and even outright economic disasters (looking at you, Kansas).
Now, in Part II, we turn to the other side of the aisle: Democratic economic policies. Do progressive taxation, worker protections, healthcare investment, business regulation, and public funding of education, infrastructure, and clean energy actually create better outcomes for the working class? Let’s find out.
Progressive Policies in U.S. States: Impact on Working-Class Families
Economic Prosperity and Taxation
Democratic-led states—California, New York, Massachusetts, Washington—tend to have higher median incomes, stronger GDP growth, and a lower percentage of uninsured residents compared to Republican-led states.
These states use progressive taxation (higher taxes on top earners) to fund public services like education and infrastructure. California, for example, raised income taxes in the 2010s to boost school funding and prevent deep budget cuts. Compare this to Kansas’s disastrous "trickle-down" tax experiment in 2012, which led to sluggish growth, massive budget deficits, and severe cuts to government programs—so disastrous that even Republicans had to reverse the policy.
Worker Protections and Wage Growth
States with Democratic leadership tend to enact stronger worker protections, such as: ✔ Higher minimum wages ✔ Paid sick leave ✔ Support for unions and collective bargaining
Over 30 states (mostly blue) have raised their minimum wage above the federal level of $7.25/hour, and the result? Wages at the 10th percentile grew 50% faster in states that raised their minimum wage compared to states that didn’t. What’s even more telling—higher wages didn’t lead to job losses. In fact, small-business employment and payrolls grew faster in these states.
Meanwhile, many Republican-led states maintain only the federal minimum wage and implement "right-to-work" laws that weaken unions. The result? Lower average wages for workers, less bargaining power, and reduced benefits.
Healthcare Access and Outcomes
Democratic-led states have consistently expanded Medicaid and prioritized healthcare accessibility, leading to significantly lower uninsured rates. This has had a huge impact on health outcomes:
🔹 9 out of 10 states with the highest maternal and infant mortality rates are Republican-led. 🔹 Democratic-led states invest more in public health programs, resulting in better preventative care and lower healthcare costs for families. 🔹 Ironically, 9 out of 10 states most reliant on federal aid (aka “welfare states”) are Republican-led—despite GOP rhetoric against government assistance.
The takeaway? Investing in public healthcare saves lives and reduces long-term financial burdens on working families.
Public Investment and Environmental Regulation
Democratic-led states prioritize funding for public transit, education, and clean energy. California leads in clean energy jobs, reflecting a nationwide trend where employment in renewables is growing twice as fast as overall job growth.
Education? Blue states invest more in public schools and universities, which has translated into: ✔ Higher rates of college attainment ✔ Increased economic mobility ✔ Higher lifetime earnings
Contrast this with Republican-led states, where public investment in education and infrastructure often takes a backseat to tax cuts—leading to underfunded schools, deteriorating roads, and fewer job training opportunities.
Economic Mobility and Opportunity
Where is the American Dream still alive? Not surprisingly, in states that prioritize investment in their citizens.
✔ The lowest rates of economic mobility (chances of moving from poverty to the middle class) are concentrated in Republican-led states, particularly in the Deep South. ✔ The highest upward mobility is found in states with strong public education systems, job training programs, and affordable higher education—all hallmarks of Democratic economic policy. ✔ A Republican-led state experiment in extreme deregulation, Kansas, failed so badly that the GOP legislature had to roll back its tax cuts after seeing a massive budget deficit.
Global Examples: Scandinavia & Beyond
Economic Mobility and Equality
Scandinavian countries (Denmark, Norway, Sweden, Finland) consistently top global rankings for economic mobility, social equality, and overall happiness.
✔ Denmark ranks #1 in social mobility, meaning a child born into poverty there has a realistic shot at a middle-class life. ✔ Scandinavian countries also boast some of the lowest poverty rates in the world—about 5% in Norway vs. over 20% in the U.S.
Wages and Worker Protections
Nordic nations have some of the highest minimum wages in the world, thanks to strong unions and collective bargaining. A janitor in Denmark earns a livable wage with full benefits—a stark contrast to the U.S., where many full-time workers still live in poverty.
Do these labor protections destroy jobs? No. Countries like Norway and Denmark consistently post low unemployment rates while maintaining strong worker protections.
Healthcare Access and Outcomes
Universal healthcare is a game-changer for working families. Consider these comparisons: ✔ The U.S. infant mortality rate is nearly twice that of Scandinavia. ✔ U.S. maternal mortality rates are some of the highest in the developed world—far worse than any Nordic nation. ✔ In Scandinavian countries, healthcare is a right, not a privilege—resulting in longer life expectancy and lower medical debt.
Public Investment and Quality of Life
Countries that prioritize public transportation, affordable housing, and free education see higher quality-of-life rankings across the board. It’s no surprise that Scandinavian nations top the World Happiness Index year after year.
Even their environmental policies help workers. Denmark and Germany have invested in clean energy jobs, creating employment opportunities in wind and solar industries without sacrificing economic growth.
The U.S. State-by-State Breakdown: Blue vs. Red
A simple look at the data tells the story: ✔ 17 out of the top 20 states ranked for income, healthcare, education, life expectancy, and cost of living are Democratic-controlled. ✔ Meanwhile, Republican-led states fill out the bottom rankings in nearly every major metric affecting working-class families. ✔ Due to a lack of proper taxation in red states, blue states end up subsidizing red states to the tune of nearly $1 trillion per year.
Final Verdict: Do Democratic Economic Policies Work?
The evidence overwhelmingly suggests that progressive policies benefit working-class families more than conservative ones.
✔ Higher wages ✔ Better healthcare access ✔ Stronger economic mobility ✔ Lower poverty rates ✔ Greater overall happiness
Whereas extreme conservative economic experiments—such as Kansas’s failed tax-cut experiment—have often led to worse outcomes, increased inequality, and economic instability.
Does this mean progressive governance is perfect? Of course not. But when measured by real-world results, policies that emphasize public investment, fair wages, and robust safety nets consistently deliver higher living standards and better economic security for working families.
The data is clear. The real question is: Will voters pay attention to it?
Sources:
State Outcomes by Party Control (1999–2018) – Andy Green, Georgetown Public Policy Review (The Growing Divide: Red States vs. Blue States - Georgetown Public Policy Review) (The Growing Divide: Red States vs. Blue States - Georgetown Public Policy Review)
New York Progressive Action Network analysis of Red vs. Blue state indicators (GDP, health, crime) (The Difference Between Blue States & Red States — New York Progressive Action Network) (The Difference Between Blue States & Red States — New York Progressive Action Network)
Brookings Institution – Evaluation of the Kansas tax-cut experiment (The Kansas tax cut experiment)
Economic Policy Institute – Minimum wage increases and low-wage growth (A tight labor market and state minimum wage increases boosted low-end wage growth between 2019 and 2023 | Economic Policy Institute)
Chetty et al. – U.S. regional economic mobility data (low mobility in the Deep South) (From the Cotton Belt to the Black Belt: Economic Mobility and the Burden of Southern History – Chicago Magazine)
World Economic Forum – Global Social Mobility Index 2020 (Denmark #1, U.S. #27) (Denmark is the world's most socially mobile country | World Economic Forum) (Denmark is the world's most socially mobile country | World Economic Forum)
World Happiness Report – Analysis of Nordic policies and happiness (Why Finland And Denmark Are Happier Than The U.S. | The World Happiness Report) (Why Finland And Denmark Are Happier Than The U.S. | The World Happiness Report) (The Nordic Exceptionalism: What Explains Why the Nordic Countries Are Constantly Among the Happiest in the World | The World Happiness Report)
Comparative poverty and health statistics (Nordic vs. U.S.) ( Addressing Child Poverty: How Does the United States Compare With Other Nations? - PMC )