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Polarized America: The Dance of Ideology and Unequal Riches

Author

Listed:
  • Nolan McCarty

    (Princeton University)

  • Keith T. Poole

    (University of California, San Diego)

  • Howard Rosenthal

    (New York University)

Abstract

The idea of America as politically polarized—that there is an unbridgeable divide between right and left, red and blue states—has become a cliché. What commentators miss, however, is that increasing polarization in recent decades has been closely accompanied by fundamental social and economic changes—most notably, a parallel rise in income inequality. In Polarized America, Nolan McCarty, Keith Poole, and Howard Rosenthal examine the relationships of polarization, wealth disparity, immigration, and other forces, characterizing it as a dance of give and take and back and forth causality. Using NOMINATE (a quantitative procedure that, like interest group ratings, scores politicians on the basis of their roll call voting records) to measure polarization in Congress and public opinion, census data and Federal Election Commission finance records to measure polarization among the public, the authors find that polarization and income inequality fell in tandem from 1913 to 1957 and rose together dramatically from 1977 on; they trace a parallel rise in immigration beginning in the 1970s. They show that Republicans have moved right, away from redistributive policies that would reduce income inequality. Immigration, meanwhile, has facilitated the move to the right: non-citizens, a larger share of the population and disproportionately poor, cannot vote; thus there is less political pressure from the bottom for redistribution than there is from the top against it. In "the choreography of American politics" inequality feeds directly into political polarization, and polarization in turn creates policies that further increase inequality.

Suggested Citation

  • Nolan McCarty & Keith T. Poole & Howard Rosenthal, 2008. "Polarized America: The Dance of Ideology and Unequal Riches," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262633612, April.
  • Handle: RePEc:mtp:titles:0262633612
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    Citations

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    Cited by:

    1. Nathan Canen & Chad Kendall & Francesco Trebbi, 2020. "Unbundling Polarization," Econometrica, Econometric Society, vol. 88(3), pages 1197-1233, May.
    2. Oren M. Levin-Waldman, 2017. "Is Inequality Designed or Preordained?," SAGE Open, , vol. 7(2), pages 21582440177, April.
    3. Hughes, Niall, 2016. "Voting in legislative elections under plurality rule," Journal of Economic Theory, Elsevier, vol. 166(C), pages 51-93.
    4. William Bianco & Regina Smyth, 2020. "The Bicameral Roots of Congressional Deadlock: Analyzing Divided Government Through the Lens of Majority Rule," Social Science Quarterly, Southwestern Social Science Association, vol. 101(5), pages 1712-1727, September.
    5. Daron Acemoglu & Alexander Wolitzky, 2012. "Cycles of Distrust: An Economic Model," Levine's Working Paper Archive 786969000000000502, David K. Levine.
    6. Ali Yurukoglu & Claire Lim, 2014. "Dynamic Natural Monopoly Regulation: Time Inconsistency, Asymmetric Information, and Political Environments," 2014 Meeting Papers 530, Society for Economic Dynamics.
    7. repec:hal:spmain:info:hdl:2441/f6h8764enu2lskk9p4a36i6c0 is not listed on IDEAS
    8. Levy, Gilat & Razin, Ronny, 2019. "Echo chambers and their effects on economic and political outcomes," LSE Research Online Documents on Economics 101413, London School of Economics and Political Science, LSE Library.
    9. Funke, Manuel & Schularick, Moritz & Trebesch, Christoph, 2016. "Going to extremes: Politics after financial crises, 1870–2014," European Economic Review, Elsevier, vol. 88(C), pages 227-260.
    10. Vladimir Novak & Andrei Matveenko & Silvio Ravaioli, 2021. "The Status Quo and Belief Polarization of Inattentive Agents: Theory and Experiment," Working Papers 674, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    11. Noble, Benjamin S. & Turner, Ian R, 2024. "Presidential Leadership and Legislative Polarization," SocArXiv sa9ke, Center for Open Science.
    12. David Rueda, 2014. "Food Comes First, Then Morals: Redistribution Preferences, Altruism and Group Heterogeneity in Western Europe," CAGE Online Working Paper Series 200, Competitive Advantage in the Global Economy (CAGE).
    13. Peter Buisseret & Richard Van Weelden, 2020. "Crashing the Party? Elites, Outsiders, and Elections," American Journal of Political Science, John Wiley & Sons, vol. 64(2), pages 356-370, April.
    14. Eloi Laurent, 2014. "Inequality as pollution, pollution as inequality," Working Papers hal-01070526, HAL.
    15. Michael J. Barber & Brandice Canes‐Wrone & Sharece Thrower, 2017. "Ideologically Sophisticated Donors: Which Candidates Do Individual Contributors Finance?," American Journal of Political Science, John Wiley & Sons, vol. 61(2), pages 271-288, April.
    16. Oren M. Levin-Waldman, 2015. "Why the Minimum Wage Orthodoxy Reigns Supreme," Challenge, Taylor & Francis Journals, vol. 58(1), pages 29-50, January.
    17. Azzimonti, Marina & Talbert, Matthew, 2014. "Polarized business cycles," Journal of Monetary Economics, Elsevier, vol. 67(C), pages 47-61.
    18. Reza Mousavi & Bin Gu, 2019. "The Impact of Twitter Adoption on Lawmakers’ Voting Orientations," Service Science, INFORMS, vol. 30(1), pages 133-153, March.
    19. Jacob Jensen & Ethan Kaplan & Suresh Naidu & Laurence Wilse-Samson, 2012. "Political Polarization and the Dynamics of Political Language: Evidence from 130 Years of Partisan Speech," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 45(2 (Fall)), pages 1-81.
    20. Boxell, Levi, 2020. "Demographic change and political polarization in the United States," Economics Letters, Elsevier, vol. 192(C).
    21. Halberstam, Yosh & Montagnes, B. Pablo, 2015. "Presidential coattails versus the median voter: Senator selection in US elections," Journal of Public Economics, Elsevier, vol. 121(C), pages 40-51.
    22. repec:spo:wpmain:info:hdl:2441/f6h8764enu2lskk9p4a36i6c0 is not listed on IDEAS

    More about this item

    Keywords

    political polarization; income inequality; NOMINATE;
    All these keywords.

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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