In an era of deepening political divides, it is rare to find an issue that transcends party lines.
Most policies find rhetoric on either side of the divide showing why their party has the right answer to address a litany of issues facing Americans.
Both sides fight over whose ideas are best to restore the American Dream. However, a new report published at the Archbridge Institute, titled “Social Mobility in the 50 States,” shows that the solutions to our problems can be found in red and blue states. Social mobility is the ability to climb the income ladder and build better lives. This report quantifies the barriers to mobility in place in each of the states. If we want to lift barriers and lives, Republicans and Democrats must learn from each other.
The rankings are eye-opening. At the top of the list is Utah, a clear “red” state; but in second is Vermont, a deep-blue state that votes for Senator Bernie Sanders. Other red states like Idaho and South Dakota appear in the top 10 but so do more predominantly blue states like Colorado and Minnesota.
At the bottom? A mix again: Red states like Louisiana, Mississippi, and Alabama are the bottom three, but New Jersey is 43rd and New York is 47th. No political party has a monopoly on success or failure in addressing mobility.
The four pillars evaluated in our report are the environment for entrepreneurship and economic growth, education quality, institutions and rule of law, and social capital. Institutions and rule of law measure aspects of the legal system such as the quality of state liability systems, tort costs, and ways in which state agencies proactively harm their citizens (civil forfeiture and corruption). Social capital is largely qualities of “civil society,” such as community involvement and engagement, as well as charitable acts in a state.
The environment for entrepreneurship is predominantly dominated by red states like Wyoming, Idaho, and Utah. At the bottom is a blend of red (West Virginia and Arkansas) and blue (Hawaii and New Jersey) states. Legal system and rule of law quality is largely highest in blue states like Connecticut, Maryland, and Maine; but the bottom two states are one red (Louisiana) and one blue (Illinois). Education quality and skills development comes down to schooling (K-12 and post-secondary education) but also education from family engagement, and the top states are a blend of red (Iowa and North Dakota) and blue (Colorado and Washington).
Or consider California, which ranked 40th overall in our index. While the state performed above average (22nd) in terms of legal institution quality, California wasn’t so golden on the issues of entrepreneurship and growth (41st) or social capital (44th). It gets even worse in terms of taxes and costs (48th) or regulation (49th), meaning that there is good, bad, and ugly to report.
Poor performers—both Republican and Democrat—erect artificial barriers like excessive regulations and fail to address natural ones like weak family and community structures.
Given that our index correlates strongly with measures of income mobility, inequality, and poverty, learning the right lessons from each other pays dividends for its citizens.
This all reshapes how we discuss the American Dream. Opportunity and mobility are not inherently liberal or conservative; they are the products of policy choices across all four pillars. Take entrepreneurship and growth as an example: Red states that combine low barriers to entrepreneurship (like Wyoming and Idaho) and a laxer tax policy (like Florida and the Dakotas) foster job creation and innovation. Lower occupational licensing and land-use restrictions allow more people, particularly non-college graduates, to launch their own opportunities and build wealth.
Conversely, red states can learn from blue states when it comes to legal systems. For the most part, Democratic states have greater access to justice and a fairer legal framework, although again there is a large degree of mix between blue and red states.
Utah exemplified this bipartisan model. As our top-ranked state, it balances free-market approaches like low taxes and fewer regulations, while making strides in addressing the cost of housing crisis with strong social capital and a distinctive approach to welfare for its poorest citizens with its One Door Policy. While this “One Door Policy” approach is current barred from existing in other states, recent legislative momentum is getting states like Louisiana closer to replicating this model. Utah has shown an ability to reduce artificial barriers while also addressing natural ones to improve access to welfare benefits.
But again, blue states like Colorado and Minnesota show that emphasizing education quality, community networks, and legal system quality is important. Investing in human development is a smart, strategic way to support mobility.
Social mobility can thrive if we reject zero-sum politics. Instead of conflating mobility with inequality, we should focus on studying the good (and bad) policies that states across the political spectrum are choosing to foster a healthier environment that leads to more upward mobility. States succeed and fail based on concrete decisions. Blue states can and should deregulate (in both business and land-use policies) to spark dynamism and opportunity, while red states can reform their legal systems to ensure the “equal treatment under the law” ideal of the American judicial system actually holds true.
In the age of political hostility, the American Dream can be a unifying narrative and ethos in California and across the country. We can debate how to get there, but we should all share the same goal and learn from the data.
Gonzalo Schwarz is president and CEO at the Archbridge Institute, where Justin T. Callais, PhD serves as chief economist.