Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa Bay news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Charlotte news in your inbox

Catch up on the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!
Expand chart
Adapted from Brookings; Chart: Naema Ahmed/Axios

The most prosperous areas of the U.S. are maintaining their wealth, and the poorest places are stuck in poverty after decades of economic progress, according to a new report by the Brookings Institution's Hamilton Project.

The big picture: For decades, there was convergence between the states with the highest and lowest median wages, and the fastest economic growth generally belonged to the counties with the lowest median earnings. But those trends have ended. As depicted in the charts above, the closing of the gap between higher and lower income regions has ended — and even reversed course in some areas.

Americans are no longer moving as often as they did, and the highly-educated are flocking to and staying in tech and financial hubs, Jay Shambaugh, one of the report's authors, tells Axios. "By and large, places have gotten stuck."

The backstory: Over the past several decades, companies and industries moved to cheaper land and labor. The invention of air conditioning made it easier to run manufacturing plants in the South, and improved roads and transportation systems allowed for expansion to the middle of the country. At the same time, Americans moved toward higher wages and better jobs.

  • But that's no longer the case. Due to increased home values in desirable locations, the technology boom and other factors, people can't always afford to move to areas that are better off economically. If their hometown experiences an economic shock like the collapse of an industry or a depression, people aren't leaving like they did in the past, Shambaugh said.
  • Meanwhile, the prospering counties and states are continuing to benefit from the tech boom. "The economy depends even more on people with college degrees," according to Shambaugh, and "the places that were more highly educated 30 years ago have extended their lead."

The exceptions are states and counties in the midwest, which used to be the middle of the pack for household earnings, have plummeted toward the bottom. And the Upper Great Plains region, which includes North Dakota, is experiencing a boom largely due to the fracking industry.

Go deeper

Updated 48 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Annelise Capossela/Axios

  1. Health: CDC director defends agency's response to pandemic — CDC warns highly transmissible coronavirus variant could become dominant in U.S. in March.
  2. Politics: Biden readies massive shifts in policy for his first days in office.
  3. Vaccine: Fauci: 100 million doses in 100 days is "absolutely" doable.
  4. Economy: Unemployment filings explode again.
  5. Tech: Kids' screen time sees a big increase.
  6. World: WHO team arrives in China to investigate pandemic origins.
Dave Lawler, author of World
1 hour ago - World

Alexey Navalny detained after landing back in Moscow

Navalny and his wife shortly before he was detained. Photo: Kirill Kudryavtsev/AFP via Getty

Russian opposition leader Alexey Navalny was detained upon his return to Moscow on Sunday, which came five months after he was poisoned with the nerve agent Novichok. He returned despite being warned that he would be arrested.

The latest: Navalny was stopped at a customs checkpoint and led away alone by officers. He appeared to hug his wife goodbye, and his spokesman reports that his lawyer was not allowed to accompany him.

Mike Allen, author of AM
4 hours ago - Politics & Policy

Biden's "overwhelming force" doctrine

President-elect Biden arrives to introduce his science team in Wilmington yesterday. Photo: Kevin Lamarque/Reuters

President-elect Biden has ordered up a shock-and-awe campaign for his first days in office to signal, as dramatically as possible, the radical shift coming to America and global affairs, his advisers tell us. 

The plan, Part 1 ... Biden, as detailed in a "First Ten Days" memo from incoming chief of staff Ron Klain, plans to unleash executive orders, federal powers and speeches to shift to a stark, national plan for "100 million shots" in three months.