The District of Columbia and state-by-state analysis
Given the geographic, historical, and cultural diversities of the various states, it is not surprising that analysis in the United States is often conducted on the state level. The District of Columbia is often included in such analyses as the 51st "state." The district does not hold statehood, as it was established as a political neutral without allegiance to any particular state. The inclusion of D.C. can certainly be justified in state by state comparisons, as it often falls at the more extreme ends of the scale. D.C. boasts the highest per capita real GDP, but at the same time has the highest violent crime rate in the country, both by considerable margins.Such analysis is also desirable due to the responsibilities of government allocated at the state level. States are given liberty to tax their citizens, shape their health and education systems, and install statewide economic regulation. This allows for policy makers to target issues in the specific states in which they arise without being bound by national interests or federal politics. For example, income inequality is considerably higher in New York than it is in Hawaii. The ability of New York to increase state taxes and institute a higher minimum wage to help combat the issue of poverty without directly influencing the economies of other states is a prime example of the advantages of a state system.