The Elites in Washington, DC are Thriving

Every so often, I share an image that is unambiguously depressing. Usually, because it suggests that freedom is slowly eroding.

I now have another addition to that depressing list.

Just as the Minneapolis Federal Reserve has an interactive website that allows users to compare recoveries and recessions, which is very useful for comparing Reaganomics and Obamanomics, the St. Louis Federal Reserve has an interactive website that allows users to compare national and regional economic data.

And that’s the source of today’s depressing chart. It shows median inflation-adjusted household income for the entire nation and for the District of Columbia. As you can see, the nation’s capital used to be somewhat similar to the rest of the nation. But over the past 10 years, DC residents have become an economic elite, with a representative household “earning” almost $14,000 more than the national average.

By the way, I put quotation marks around “earning” in the previous sentence for a very specific reason.

There is nothing wrong with some people accumulating lots of wealth and income if their prosperity is the result of voluntary exchange.

It’s increasingly just a racket for insiders to get rich at the expense of everyone else.In the case of Washington, DC, however, much of the capital’s prosperity is the result of coercive redistribution. The lavish compensation of federal bureaucrats is a direct transfer from taxpayers to a gilded class, while the various lobbyists, contractors, cronyists, politicians and other insiders are fat and happy because of a combination of direct and indirect redistribution.

I should also point out that the entire region is prospering at the expense of the rest of the nation.

By the way, some people will be tempted to argue that rising income levels in DC are simply a result of gentrification as higher-income whites displace lower-income blacks. Yes, that is happening, but that begs the question of where the new residents are getting all their income and why the nation’s capital is an increasingly attractive place for those people to live.

The answer, in large part, is that government is a growth industry. Except it’s not an industry. It’s increasingly just a racket for insiders to get rich at the expense of everyone else.

Daniel J. Mitchell


Daniel J. Mitchell

Daniel J. Mitchell is a senior fellow at the Cato Institute who specializes in fiscal policy, particularly tax reform, international tax competition, and the economic burden of government spending. He also serves on the editorial board of the Cayman Financial Review.

About Bobby Rodrigo

A long time legal professional, journalist, advocate, and activist, Bobby is part of We Do Better Relief, We Do Better, United Coalition of Cannabis Activists, Peachtree NORML, Human Solution International, Colorado NORML, Behind the Smoke, The Goodness Tour, We Do Better Coin, We Do Better CBD, Best Interests of the Child, Tax Revolution Institute Inc, American Bar Association, International Bar Association, National Association of Enrolled Agents, National Association of Criminal Defense Lawyers, Atlanta Food & Farm, Coffee Party USA, Director, Solutions Institute, People Against The N.D.A.A., Flint Garden City COOP LLC, American Constitution Society For Law and Policy, Capitol Area Muslim Bar Association and National Legal Aid Association. Holds Press Credentials from The Atlanta Press Club, Native American Journalists Association, Online News Association, Society of Professional Journalists, Radio Television Digital News Association, National Association of Hispanic Journalists, National Association of Black Journalists, and the National Press Photographers Association. Member, Produces and hosts his radio show I Take LIBERTY With My Coffee and also has written for many media outlets including The Fifth Column, and Anti-Media.