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41 sats \ 4 replies \ @Undisciplined 22 Jun \ on: U.S. States Most Dependent on the Federal Government econ
I have a feeling that military spending is skewing this. Money spent on bases and personnel doesn't exactly mix into the rest of the state economy, certainly not dollar for dollar.
Red States/Conservative states are generally less educated, have weaker economies, with higher unemployment, and higher welfare requirements. In other words more government dependency.
They collect less tax revenue and have a less educated workforce (lesser earning).
In the US they call them the 'flyover states' and their economic stagnation is in part the reason for Mr. Trump's political victory or appeal.
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That's a bit oversimplified.
Red states are currently growing because people are moving out of blue states in large numbers for the economic opportunity and lower cost of living.
I think bracket creep and farm subsidies tell some of the story that you're discussing. Because the cost of living is lower, nominal wages are lower which means more people qualify for federal programs and they pay lower income tax rates. Some of the lower cost of living is due to lower productivity, but some of it is also just the lower tax and regulatory burdens faced by producers.
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The article doesn't mention military spending, but it does say it leaves out Medicaid payments.
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Oh, that's a very interesting note, since CA for instance has a very disproportionate share of the nations poverty.
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