Median Income of Texas

An increase in the average income of a state by a given proportion leads to a myriad of benefits to households in that state. Household income is a measure normally used by governments and private institutions to estimate the income of every citizen above the age of eighteen years in a country. Murdock (2003) asserts that any increase in the median income of a country is beneficial to households in that state. It is common knowledge, therefore, that a rise in the average income will result to improved purchasing power of households, and thus their spending habits(Murdock 2003, p.62-63). The Republican Party will benefit from an increase in average income for the simple reason that it represents the official opposition in the senate. The role of opposition in the senate is to campaign for the welfare and rights of the public or households in the country or state.

From the data provided in question, the average income in Texas was $47,753 in 2007-2008 and $47,862 in 2009-2010, an increase of 0.2 % in the average income. This rise in the average income led to empowerment of households in Texas since they were capable of improving their livelihoods through improved purchasing power. Madden (2000) postulates that, during the period 2006-2008, household income in Texas state was at its lowest because most African-Americans in the state had slightly lower and unequally distributed  income than their American counterparts (Madden 2000, p.82). The 0.2% increase in average income of Texas during the period 2008-2010 led to improved incomes and terms of work for the African-American households, thus enabling them to change their lifestyles. This happened through redistribution of income among households. This resulted to increased demand for goods and services in the state, thus promoting trade.  

Further, 0.2% increase in the average income led to a reduction in the Gini coefficient; a measure of poverty index. The poor and lower echelons of the society in the state benefited from this increase through financial empowerment and income redistribution in the state. This led to improved standards of living for the poor and lower echelons of society in the state (Brown, Joyce, Garcia, Lewis & Biles 2011, p.190-191). Therefore, the increase in average income is beneficial to the Republican Party since it represents the interests of the public or households in the Senate.

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