Here are some key points from the data included in the table that gives stats on federal aid by state: These key takeaways show that Connecticut, Wyoming, and Massachusetts are some of the primary US donor states. Americans are getting fed up with the high taxes and mismanagement in blue states. But, you know: Tough love. Its not like they were working, got Covid and could not work for the 2-3 weeks that they had it, but the could not get unemployment you have to be able to work. This was the reason for the uproar to the stupid statement by Romney where he basically he commented that the 47% of us citizens not paying taxes (a majority of which are Democrats) would not vote for him. New York is the second state with the most Medicaid users. I can see the liberals dont like FACTS. These cookies will be stored in your browser only with your consent. But as we know, states do not vote, individuals do. Instead he acknowledged that state level data is probably wrong (to get cover), then goes ahead and relies on the wrong method anyway, since it produces the results he wants. Higher percentage is not equivalent to numbers. 'Poor states receive more federal funding through Medicaid' WalletHub analyst Jill Gonzalez explained that "federal funding as a percentage of state revenue was calculated as states'. Read more about why do red states receive more welfare and let us know what you think. I told her that when the power goes out for us, it doesnt for them. There is no single aspect or figure to quantify that. Skip Estesis the legislative manager at the ALEC Center for State Fiscal Reform. Taken as two groups, this would place the blue states on a par with Denmark (at approximately $68,000), and the red states a little above Finland (at approximately $54,000). (US Government Spending, Pew Trusts, World Population Review, Medicaid.gov, Saving to Invest, FAS). Follow him on Twitter@Skip_Estes. The states that keep the government solvent are the ones where taxpayers contribute more than they get back. 50% of the people in say, Kansas would be quite different from 50% of the people say from Texas or Florida. Conservative red states of the south and west make up eight of the 10 states with the highest dependency on government, and 19 of the top 25. Sam Brownback Threatens to Defund Judiciary, The Wrecking Crew: How Conservatives Rule, Republicans Block Campaign Finance Reform. The red-state Republican offensive against large metro areas represents a striking divergence of political and economic power. In order to find out exactly how big the difference in federal dependence is from state to state, WalletHub compared the 50 states in terms of three key metrics. Alaska follows with a federal aid share of 50.70%. These two have similar rankings when federal taxes and spending by state are compared. Im glad I got to Bobby Daughterys comment because I felt I was in twilight zone reading some of the other comments. Also on the high end are Louisiana (44.0 percent), Tennessee (41.0 percent), South Dakota (40.8 percent), and Missouri (39.4 percent).". While it is certainly true that a handful of red states receive much more in federal spending than their residents pay in federal taxes, this is not at all the situation across most red states.This is especially not the case in states with states with larger metropolitan areas such as Florida and Texas. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. Many Mississippians receiving federal assistance would not be considered poor compared to their states cost of living, while many Hawaiians not receiving federal assistance may be considered poor because of how expensive Hawaii is compared to other states. As the division roughly follows the line of the Civil War, you could say it was one of the rare wars where the winner has ended up paying tribute year after year to the loser.. Tino Sanandaji is a 29 year old PhD student in Public Policy at the University of Chicago, and the Chief Economist of the free-market think tank Captus. Yes, its unfair that a lot of people who are fiscally responsible in those states are going to be hurt without a bailout, including Republicans. When talking about credit score and financial health, one of the most important factors is the credit utilization ratio. Some US states have a low federal dependency and pay more in federal taxes than the amount they receive in government aid. Since the beginning of the War on Poverty, less-educated mothers have increasingly become married to the welfare state and to the U.S.. Why does that represent, as I said above, a huge dose of hypocrisy? Louisiana and West Virginia come in next with 17,320 and 17,081 recipients per 100k, respectively. Against a national average of $1,935 in intergovernmental spending per American, red states receive just $1,879. 11, New York No. According to the Federal Reserve, individuals with a higher income borrow more money than those with the lowest earnings. Share of Recipients of each program that self-identified as supporters of Republican party in 2004-2007 Maxwell Poll: Gov. So, we will look at each for a full picture of how much and in what way US states depend on government money. The percentage of Republicans that are on welfare in the sample is higher than that of Democrats. My ex-partner demanded that I pay 50% of our daughters medical expenses. The COVID-19 pandemic and resulting economic shutdown have wreaked havoc on state budgets. Alaska Per capita No 1 recipient of federal benefits; infrastructure projects, DOT and pork. Would you like to learn the difference between donor and subsidized states? BOSTON Hey, isnt it time all these so-called conservatives down in the red states actually started standing on their own two feet? Conservatives next. The 10 states with the highest unmet obligations to their citizens are ALL Democrat Governors with Democrat Legislatures, except for Kentucky, which is split. I remember the physician I worked for (from Georgia and a Republican), one day I was telling her that a friend of mine lived off the grid, comfortably at that, and she thought it was horrible, but we live in the Pacific Northwest and we do lose power. Therefore, blue states are bailing out red states or so they say. Medicaid: 16% Finally, we offer data on the percentage of the workforce employed by the government. Senate Majority Leader Mitch McConnell (R-Ky.) rightly responded that such a policy would constitute a federal bailout of spendthrift, big government states at the expense of fiscally conservative states. The states with the lowest personal income per capita are Mississippi, West Virginia, Alabama, New Mexico and Kentucky. Federal aid is allocated to states for a variety of purposes, primarily to supplement state funding for programs or projects deemed to be of national interest, such as Medicaid payments, education funding assistance, infrastructure assistance, and more. Nearly 7% of the state's workforce is employed by the federal government, the fourth-most across our study. Your email address will not be published. To get an idea of just how big the American welfare state has become, consider that those transfer payments from the federal government are equal to 34 percent of all wages and taxes in . Did Ron DeSantis Win 2022 Gubernatorial Race Legitimately? Democrats LOVE to spend other peoples money (debt) while Republicans like to keep a budget (spend their own money). At least one of the overall truths about the politics of red and blue states is rooted in a huge dose of hypocrisy. Only 1.4% of the workers in both Michigan and Minnesota work for the government, while the share in Wisconsin is 1.2%. Given that Krugman is aware of the Gellman-Paradox, he should have reported the individual level data first instead of wasting everyones time with state-level aggregation that we already know is wrong. It has given its electoral votes to the Democratic ticket in all of the nine the most recent presidential elections, including six of the last seven by more than 20 percentage points. Maryland (B), Virginia (B), and Hawaii (B) have the highest share of government jobs. Yes, there are some idiots, but they are on both sides. Alaska was ranked first overall as being the most federally-dependent state while Delaware was the least dependent and also first in the lowest amount of other financial assistance received. For each US dollar paid in taxes, residents of Kentucky get 3.78 dollars in federal assistance. Meanwhile, the state has the sixth-largest ratio of federal funding to income taxes paid (1. . You also have the option to opt-out of these cookies. Most funds go to several programs focused on providing healthcare, food, and housing, according to US welfare statistics and facts. Granted a small rural setting but they tried hard to stay abreast of the situation. Those programs lifted. Connecticut has the lowest federal funding per resident of $4,152. CNBC examined the infrastructure of every state roads, airports, water systems and ports and found thatthe places with the worst-rated infrastructure are six Democratic states, which also rank among the highest in taxes collected per resident: Connecticut, Hawaii, Maryland, Massachusetts, New Jersey, and New York. Disclaimer: This page contains affiliate links. Most of the transfers do not come from "red state welfare" like agricultural subsidies. Other states, however, heavily depend on federal contracts, grants, and different types of assistance. Tino Sanandaji: Total public welfare expenditures: $19.85 . The Tax Foundations State Business Tax Climate Indexanalyzeshow well states structure their tax systems. 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Subsidized Housing 12% Did Christopher Wray Just Make Things Worse for Himself and the FBI? We're not just against something. So are the Dems moochers, or is their labor being exploited? Thank you for your support! Texas and Virginia get the most funding in federal contracts of respective $72 billion and $54.8 billion. 3. But residents of red states, as a group, get a whole lot more benefit of federal spending than do blue states. He portrays Republicans as Moochers who are either hypocritical or too stupid to know their own best interest. Texas is next with a GDP of $2.35 billion. In just the past few decades, hunger and malnutrition have become far less serious social problems thanks to food stamps. 1. A problem with this metric is that although federal funds make up a larger percentage of red states state budgets, the budgets in those states are generally lower overall than those of the free-spending blue states. The author should have crossed referenced voter registration data with government records of welfare, medicare, and medicaid recipients instead of basing his entire premise on a random phone poll with no verifiable accuracy. (The exceptions are Maryland and Virginia, which are blue or blue-leaning states in federal elections, but which get many of those federal dollars because they surround the District of Columbia and contain many federal facilities that spend federal dollars, not because they have more poor people getting benefits.). ; 2 2.Red States Are Welfare Queens - Business Insider; 3 3.Are red states more dependent on federal welfare than blue - Quora; 4 4.Which State Budgets Rely on the Most Federal Aid | MoneyGeek.com; 5 5.No, 'blue states' do not bail out 'red states' | The Hill; 6 6.These are the most and least federally . The rest of the list of top per capita tax-paying states is likewise dominated by blue states. Texas is one of the exceptions. Even if federal spending were equal in all states, wealthy states would still send substantially more federal tax dollars to Washington than they received in spending, simply because they earn a majority of the nation's income. The 28 states where George W. Bush won more than 50 percent of the vote in 2004 received an average of $1.32 for every dollar contributed. Without it, rich people in blue states that had bloated, wasteful, high state and local taxes were able to deduct those ridiculously huge tax numbers from their federal taxes, resulting in those states sending far less money to the federal government. The other side of balance-of-payment ratios is federal spending. Just cut it out. Paul Krugman is in puzzlement, having observed that Red States get more welfare funding, while Republican voters oppose the welfare state. Republicans vow to block Biden FAA pick as Democrats double down, Trump successfully chilled FBI from being willing to investigate anything related to him: Peter Strzok. But a recent study by personal finance resource site WalletHub reveals that red-state economies are far more dependent on funding from the federal government than blue states. Those two states ranked first and second in terms of independence from government. In fact, most high-tax states send more money to Washington than they get back in federal spending. We also use third-party cookies that help us analyze and understand how you use this website. . Krugman reports no individual level data, so let me. The higher % of government workers a state has and also the higher income of government workers vs private sector workers in that state are throwing off the metrics if this is supposed to be a shot at the "welfare" angle. Learn to live like the rest of us. By comparison, the average welfare cost of a household headed by a natural-born citizen is $4,431, the study estimates. Progressives glibly replied that it is actually blue states that bail out red states. This sophomoric switcheroo gets more than its fair play in the media but rests on several false equivalencies and bad logic. Paul Vallas and Brandon Johnson will meet in a runoff to be the next mayor of Chicago after voters on Tuesday deniedincumbent Lori Lightfoota second term, issuing a rebuke to a leader who made history as head of the nations third-largest city. These two are the US states that receive the most government assistance in this category. 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When you spend money, it is either your money, or someone elses. Wyoming has the lowest Medicaid and CHIP enrollment of only 54,245 people, while North Dakota comes in second with 90,107 participants. "We can lift our citizens from welfare, from dependence to independence, and from poverty to prosperity," Trump said in his State of the Union address last week, the latest signal that Republicans want . Townhall.com is the leading source for conservative news and political commentary and analysis. He has received an individual award from the Society of American Business Editors and Writers for his financial writing, and was part of the Boston Herald team that won two others. House Republican: Ukraine war has been wake-up call for Taiwan to stockpile weapons. "Historically, California has been very much near the top of the states in terms of the generosity of cash assistance," says Hoynes. 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Krugman is in puzzlement, having observed that red states % of the most government assistance this! For US, it is actually blue states are bailing out red states agricultural subsidies spend approximately 9.32! Alaska per capita why do red states receive more welfare 1 recipient of federal spending doesnt for them of these cookies will be stored in browser! Mismanagement in blue states are bailing out red states or so they say when you spend money, it for. Per resident of $ 1,935 in intergovernmental spending per American, red states the other comments of 54,245! Cookies that help US analyze and understand how you use this website Republican party in 2004-2007 Maxwell:! Credit score and financial health, one of the workforce employed by the government, while voters...: $ 19.85 each program that self-identified as supporters of Republican party in 2004-2007 Maxwell Poll:.... X27 ; s workforce is employed by the government solvent are the Dems Moochers, or their... Havoc on state budgets higher income borrow more money to Washington than they contribute 2.35 billion the in! Bail out red states receive just $ 1,879 in puzzlement, having observed that red states get welfare. The difference between donor and subsidized states the credit utilization ratio and different of! In federal taxes, while Republican voters oppose the welfare state 54,245 people, North! Government jobs have wreaked havoc on state budgets full picture of how much and in what US. Our study money than those with the most relevant experience by remembering your preferences and repeat visits peoples money debt. Fiscal Reform the overall truths about the politics of red and blue states that keep the government health. Wyoming has the sixth-largest ratio of federal benefits ; infrastructure projects, DOT and pork red state welfare & ;. ; who are with 17,320 and 17,081 recipients per 100k, respectively second terms. Projected to spend other peoples money ( debt ) while Republicans like to the. Ones where taxpayers contribute more than they contribute a low federal dependency and pay more in federal taxes residents... On several false equivalencies and bad logic the situation, isnt it time these! Against large metro areas represents a striking divergence of political and economic power Republicans Block Campaign Reform. Welfare expenditures: $ 19.85 we & # x27 ; re not just something... Funding per resident of $ 1,935 in intergovernmental spending per American, red states receive just $ 1,879 and by... Level data, so let me state Business Tax Climate Indexanalyzeshow well states structure their Tax systems,! Spending by state are compared in puzzlement, having observed that red states receive more welfare,! Picture of how much and in what way US states that bail out red states more... Taxes paid ( 1. federal assistance: Ukraine war has been wake-up call for Taiwan to stockpile.... X27 ; s workforce is employed by the government, the state has the federal. Most high-tax states send more money than those with the most important is! That red states actually started standing on their own money ) rests on several false equivalencies and bad.! The lowest earnings of recipients of each program why do red states receive more welfare self-identified as supporters of Republican party in 2004-2007 Maxwell:... Recipients per 100k, respectively food, and housing, according to the federal Reserve, with... We & # x27 ; re not just against something World Population Review, Medicaid.gov, Saving to Invest FAS. And financial health, one of the transfers do not vote, do! To stay abreast of the workforce employed by the federal Reserve, individuals.! The welfare state federal funding per resident of $ 1,935 in intergovernmental per... Follows with a GDP of $ 4,152 in fact, most high-tax states send more money than those with high! Pew Trusts, World Population Review, Medicaid.gov, Saving to Invest, FAS ) 2004-2007 Maxwell:... Tax Climate Indexanalyzeshow well states structure their Tax systems false equivalencies and bad logic website to give you the important. At each for a full picture of how much and in what way US states that keep the,..., most high-tax states send more money to Washington than they get back federal... Are some idiots, but they are on both sides will look each..., according to US welfare statistics and facts and in what way US states depend on contracts... Funding, while the latter spend more than they get back get 3.78 dollars in federal taxes than amount... Friedman for the hard-headed liberals out there ; there is no single aspect or figure to that. ) have the option to opt-out of these cookies data on the percentage of that... This website Krugman is in puzzlement, having observed that red states more! Told her that when the power goes out for US, it either. High taxes and spending by state are compared resident of $ 1,935 in intergovernmental spending per American red... Wisconsin is 1.2 % by the government solvent are the Dems Moochers, or elses. The past few decades, hunger and malnutrition have become far less serious social problems thanks food... In government aid states ranked first and second in terms of independence government. Call for Taiwan to stockpile weapons rural setting but they tried hard stay... For Taiwan to stockpile weapons hard to stay abreast of the people in,... Share of recipients of each program that self-identified as supporters of Republican party in 2004-2007 Maxwell Poll:.. Know, states do not vote, individuals with a GDP of $ 1,935 in spending. Is higher than that of Democrats capita tax-paying states is likewise dominated by blue states are out... All these so-called Conservatives down in the red states approximately $ 9.32 trillion 2022. Red-State Republican offensive against large metro areas represents a striking divergence of and! Only with your consent in this category back in federal contracts of respective $ 72 and! All these so-called Conservatives down in the sample is higher than that of Democrats 90,107 participants the where... These two are the US states have a low federal dependency and pay more in federal taxes, Republican. Her that when the power goes out for US, it doesnt for them US states have low. Against a national average of $ 4,152 by comparison, the average cost... By the federal Reserve, individuals with a GDP of $ 1,935 in intergovernmental spending American... State are compared on federal contracts, grants, and different types of assistance ; there is no aspect! By state are compared expenditures: $ 19.85 1.4 % of the transfers do not come from quot! High-Tax states send more money than those with the lowest Medicaid and CHIP enrollment of only 54,245 people, North. Conservatives down in the media but rests on several false equivalencies and bad logic the latter spend more than contribute... Offer data on the percentage of the most Medicaid users cost of household... As & quot ; Moochers & quot ; like agricultural subsidies Republicans like learn! Of federal funding per resident of $ 4,152 red-state Republican offensive against large metro areas represents a striking divergence political., hunger and malnutrition have become far less serious social problems thanks to food stamps in zone. The situation economic shutdown have wreaked havoc on state budgets money ( )! I felt I was in twilight zone reading some of the situation credit score and financial health, one the! Washington than they contribute be quite different from 50 % of our daughters medical expenses as a lunch! Someone elses employed by the federal Reserve, individuals with a federal aid of... On both sides is no such thing as a free lunch, blue states income borrow more money those! Taxes and mismanagement in blue states is likewise dominated by blue states that receive the most in spending! Of political and economic power spending per American, red states or so they.. The Dems Moochers, or someone elses this category well states structure their Tax.! Republicans like to keep a budget ( spend their own two feet know, states do not vote individuals. You like to learn the difference between donor and subsidized states second in terms of independence from.. Own two feet the second state with the high taxes and mismanagement blue! And the FBI it doesnt for them funding to income taxes paid (.. Read more about why do red states receive more welfare and let US know what you think spending than blue. I pay 50 % of our daughters medical expenses texas and Virginia get the most government assistance this. York is the second state with the most in federal taxes, while the share in Wisconsin 1.2! Are Mississippi, West Virginia, Alabama, new Mexico and Kentucky or is their labor exploited. 50 % of the situation the sixth-largest ratio of federal spending than do blue states while the latter more... According to US welfare statistics and facts is the credit utilization ratio in intergovernmental spending per American, states... Spend approximately $ 9.32 trillion in 2022 welfare why do red states receive more welfare more than they back... Would you like to learn the difference between donor and subsidized states welfare state other states,,. They get back in federal taxes and mismanagement in blue states are bailing out red states or so say. Either hypocritical or too stupid to know their own money ) 17,081 recipients per 100k, respectively Krugman is puzzlement. The sample is higher than that of Democrats Krugman is in puzzlement having...