Conservative controlled states cut infrastructure and welfarespending in response to increased exposure to global trade

The past year has seen growing controversy over the Trans-Pacific Partnership trade deal which is currently being negotiated between 12 countries, the U.S. included. Concerns about economic dislocation stemming from similar trade deals often lead social democratic governments to increase spending on welfare programs to compensate citizens. Given the lack of a U.S. social democratic party, the response of state governments to global economic liberalization is often quite different. In new research, Brian Krueger and Ping Xu find that when exposed to higher levels of international trade, left-leaning state governments maintain their levels of welfare and infrastructure spending, while conservative administrations decrease it. They explain these differing reactions may be partly explained by the increasing levels of policy polarization in state governments.