It turns out that over the last two decades, not only has Washington, D.C., become much more involved in our lives, but its residents have done extremely well financially when compared to the rest of the country.
Take a look at this graph that was recently put together by our friends at Business Insider. The graph compares the per capita personal income of D.C. residents to the per capita personal income of the rest of the U.S.
The higher the line, the larger the per capita income for D.C. is in relation to the rest of the country. When you look at this comparison, the trend over the last 20 years becomes crystal clear.
Four other things to note:
- Immediately after World War II, there was a steep decline in income. The rest of the country's income increased relative to those living in the capital.
- The points of closest parity between D.C. and the rest of the country came under Republican Presidents Richard Nixon and Ronald Reagan.
- The largest disparities came under Democratic Presidents Harry S. Truman and Barack Obama.
- There are increases in disparity during every single period of recession.
During various periods of economic difficulty, the people in the nation's capital financially do just fine. It's the rest of the nation that gets hit the hardest during a recession.