Donald Trump and Republicans in Congress love to demonize government handouts, which, in
fact, their own supporters depend on and are increasingly financed by taxpayers in blue
states.
The federal program Temporary Assistance for Needy Families, what we used to call “welfare,”
provides cash assistance to fewer than 1 percent of Americans.
But the Trump administration is proposing to lump many social programs under a new agency
with the word “welfare” in its title.
A recent White House report on imposing work requirements, for example, put Medicaid, food
assistance, and housing aid into a rebranded program called “noncash welfare.”
Defined this broadly, a large chunk of America relies on welfare.
Add in disability benefits, unemployment insurance, and medical benefits, such so-called “welfare”
amounts to 17 percent of the average American’s income.
Welfare has become especially unpopular in “red” states that vote Republican and
support Trump, but these same states are often the biggest beneficiaries of government assistance.
Include price supports for agriculture, subsidies for land management and forestry, and defense
contractors, and you find that a large portion of the economies of red states depend on federal
dollars.
Here’s the irony.
Residents of “blue” states send more tax money to Washington than they get back in
federal help, while residents of “red” states send less money to Washington than
they get back in federal help.
In 2015, for example, New Jersey got back only 74 cents in federal spending for every
tax dollar it sent to Washington.
New York got back 81 cents, Connecticut: 82 cents, and Massachusetts: 83 cents.
But when you turn to the red states, it’s the opposite.
Mississippi received $2.13 for every tax dollar it sent to Washington.
West Virginia: $2.07.
Kentucky: $1.90.
And South Carolina: $1.71.
Taking the Trump administration's expansive view of the meaning of welfare to its logical
conclusion to include all those benefiting from federal spending, blue states are sending
welfare to red states.
The same red states that say they don’t like welfare.
Under Trump's tax law, blue states will be giving even more welfare handouts to red states.
That’s because the law set new limits to the amount of state and local taxes people
can deduct from their federal taxable incomes.
And since people in blue states pay much more state and local taxes than people in red states,
blue-staters will be paying that much more in federal taxes.
which means an even bigger transfer from blue state residents to all those red state Republican
voters, whose party despises handouts.
Now, I should add that some of us here in blue states don’t mind giving red states
a bigger helping hand.
The vast majority of Americans also oppose cuts to programs that aid the poor, elderly
and sick.
Because most Americans figure we’re all in this together, and those of us who can
do so ought to help out those in need.
We don’t regard it as welfare handouts.
We call it social insurance.
Indeed, social insurance is needed and used by almost all of us, when you include Social
Security, Medicare, and unemployment insurance.
And even programs relied upon mostly by the poor end up helping a large portion of us
because roughly one-third of all Americans are poor at some point in their lives.
So remember, attacks on so-called welfare are just another means of attacking the things
most of us need, and dividing the country into us and them.
In reality, voters in red states are as dependent on the federal government as voters in blue
states, and, truth be told, even more dependent.
What do you think?
Should blue states finance red states?
Let us know in the comments.
If you would like to learn more about the economy, please watch our video on the Monopolization
of America.
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