Diversity, Jobs and Economics

Economic growth requires population growth. The states in the US that embrace growth and diversity are thriving. The ones that don’t, aren’t. It’s that simple.

The argument is that simple. Companies have two ways to grow revenue: (1) They can sell to more buyers, or (2) Charge buyers more for what they sell. That’s it. The “backdoor” price increase — reducing the amount of product but keeping the price the same — is actually a price increase. The unit price goes up when companies do that. Competition places limits on price increases, so to promote growth, you really want more buyers. You can expand the number of buyers by entering into international markets, but as companies found this year, there’s a political risk associated with that. The safer alternative is to promote population growth at home.

Every company benefits from population growth, from big corporations to mom-and-pop groceries. The environment doesn’t benefit, but, in the short run, business owners and workers do.

Which are the most and least diverse states in the US? (1)

Most Diverse States in America State GDP ($B) Least Diverse States in AmericaState GDP ($B)
1 California$3,091.2 41 Wyoming$40.8
2 Texas$1,867.8 42 Ohio$700.5
3 Hawai’i$94.6 43 Iowa$196.1
4 New Jersey$645.7 44 Utah$186.2
5 New York$1,738.4 45 Kentucky$214.6
6 New Mexico$103.5 46 Montana$50.5
7 Maryland$425.2 47 New Hampshire$87.6
8 Florida$1,080.4 48 Vermont$34.7
9 Nevada$172.6 49 Maine$66.5
10 Illinois$895.7 50 West Virginia$80.9

Economic growth in the northern New England states (Maine, New Hampshire and Vermont) is hampered by the lack of workers, to the point that Vermont has offered cash incentives to people willing to move into the state and buy a home there.

Ohio has the largest economy of the states that are least diverse — and its economy is less than 25% of California’s.

So the next time you meet someone whose a racist, ask him or her why they want to be poor. Its a good question, and they probably haven’t thought about it.

Sources:

  1. https://wallethub.com/edu/most-least-diverse-states-in-america/38262/
  2. https://www.usgovernmentspending.com/gdp_by_state

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