For two decades, Delaware has been a laboratory for progressive economic policy. From expanded social programs to aggressive minimum wage hikes, from increased business regulations to generous unemployment benefits, our state has faithfully implemented the liberal playbook. The results are now clear: these well-intentioned policies have created an economic mirage that appears successful on paper, while systematically excluding tens of thousands of Delawareans from productive economic participation and ultimately leading to an income tax increase.
Delaware politicians celebrate the state’s 3.6% unemployment rate and rising wages as evidence that progressive policies work. But the real story lies in what they don’t mention: our labor force participation rate has collapsed from 65.7% in 2005 to just 59.0% today. If Delaware had maintained its 2005 participation levels, our unemployment rate would actually be 10.3%.
This represents roughly 45,000 to 50,000 working-age Delawareans who have simply stopped looking for work. They haven’t disappeared—they’ve been absorbed into an expanding web of government dependency programs that progressive policymakers have steadily enlarged over the past two decades.
The wage growth story reveals the fundamental flaw in progressive economic thinking. Yes, employed workers saw 47% wage increases from 2014 to 2025, but according to the Federal Reserve, real per capita income for all Delawareans grew by only 1.4% annually, well below historical standards. Progressive policies created artificial wage floors and benefits that priced many workers out of the job market entirely, while those who remained employed benefited from an increasingly exclusive economy.
This is the expected result of progressive economic policies. When the government makes it costly to hire workers through mandates, regulations, and payroll taxes, businesses tend to hire fewer employees while paying their existing staff more. When social programs offer attractive alternatives to working, sensible people opt not to work. The outcome is exactly what we observe in Delaware: higher wages for fewer workers and a growing number of residents dependent on government support. The increase in Delawareans relying on assistance is reflected in state spending, which has risen by an average of 7.15% since 2018—nearly double the inflation rate of 3.73% during the same period.
In 2005, Delaware still maintained some of its traditional pro-business orientation. Today, after years of progressive governance, we’ve become another high-cost, high-regulation state that drives out working family jobs while creating lucrative opportunities for college-educated professionals who can navigate the regulatory maze.
The policy mechanisms are clear. Generous unemployment benefits reduce incentives to find work quickly. Expansive disability programs provide alternatives to employment. High minimum wages price out entry-level workers. Progressive housing policies have made Delaware’s housing market expensive, forcing working families to choose between unaffordable rents and government housing assistance.
A few targeted policy reforms can start reversing this damage. For example, Delaware could forgive 1% of the state’s share of the real estate transfer tax for individual home buyers—not LLCs or business entities—purchasing property in low-income census blocks. This would help working families build wealth through homeownership in areas where economic stability is most needed, while discouraging reliance on government assistance.
Charlie Copeland is the board chair of Associates International. He sits on the Board of Govenor’s at the Delaware State Chamber of Commerce and serves as the chair of the Center for Economic and Fiscal Policy at the Caesar Rodney Institute.
