Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Red States, Blue States and the Redistribution of Federal Spending
Jeff Frankel's Weblog ^ | 04/01/2010 | Jeff Frankel

Posted on 04/01/2010 6:26:44 AM PDT by SeekAndFind

April 1 is Census Day. Evidently Glenn Beck and Michele Bachmann have been encouraging Americans to boycott the census — to refuse to fill out the whole form. This protest follows from their small government ideology.

I am not always sure what they, or Republicans, or Tea Party participants mean by small government. They say they want a government that intervenes less in the economic sphere. Perhaps they don’t like the idea that the census numbers are used, among other things, to determine the allocation of federal spending across states, because they don’t think it is the business of the government to redistribute income. That is “socialism.” Even “Stalinism.”

A virtue of the Tea Party movement is that many of its members are engaging in national politics for the first time. It occurred to me that they might be able to use some help figuring out the lay of the land, and so I thought I would pursue a little research on their behalf. The question is geographical redistribution: which states receive subsidies from the federal government, and which other states are taxed to provide those subsidies. One might be able to sympathize with the feeling of those living in the heartland of the country that they should not have to subsidize the northeastern states through, for example, federal housing programs. True, the cost of housing, food, and other living expenses is much higher in the coastal cities, compared to the South or Midwest; but it isn’t the job of the federal government to smooth out geographical variation in real income. Furthermore the coastal residents could always move if they don’t like their high cost of living. Given the big budget deficit problem that we will have to solve in the near future, knowing which states are receiving more than their fair share of handouts should help us know where to cut spending.

The accompanying chart contains 50 data points, one for each state. The data are from 2005, the most recent year available. One axis ranks states by the ratio of income received by that state from the federal government, per dollar of tax revenue paid to the federal government. Personally, I think the “red state / blue state” distinction is overdone. But to capture the widely felt tension between the heartland and the coastal urban centers, I have put on the other axis the ratio of votes for the Republican candidate versus the Democratic candidate in the most recent presidential election.

It will come as a surprise to some, but not to others, that there is a fairly strong statistical relationship, but that the direction is the opposite from what you would think if you were listening to rhetoric from Republican conservatives: The red states (those that vote Republican) generally receive more subsidies from the federal government than they pay in taxes; in other words they are further to the right in the graph. It is the other way around with the blue states (those that vote Democratic).

One reason is that the red states on average have lower population; thus their two Senators give them higher per capita representation in Washington than the blue states get, which translates into more federal handouts. The top ten feeders at the federal trough in 2005 were: New Mexico, Mississippi, Alaska, Louisiana, West Virginia, North Dakota, Alabama, South Dakota, Kentucky and Virginia. (Sarah Palin’s home state of Alaska ranks number one if measured in terms of federal spending per capita. Alabama Senator Shelby evidently gets goodies for his state, ranked 7, by indiscriminately holding up votes on administration appointments.) The top ten milk cows were: New Jersey, Nevada, Connecticut, Minnesota, Illinois, Delaware, California, New York, and Colorado.

Perhaps in determining how the federal government redistributes income across states one should view its role more expansively than is captured in the budget numbers. In the western states there are federal water projects that subsidize water for farmers, artificially low grazing fees for ranchers, and leases for hard rock mining and oil drilling on federal lands that have historically charged artificially low prices. Perhaps the biggest federal redistribution program of all is massive agricultural subsidies. The four congressional districts that receive the most in farm subsidies are all represented by “conservative” Republicans, located in Nebraska, Kansas, Iowa, and Texas. (Michele Bachmann’s family farm apparently received $250,000 in such farm payments between 1995 and 2006.)

The most commonly ignored area of geographical redistribution is the federal government’s permanent policy of “universal service” in postal delivery, phone service and other utilities (electricity; perhaps now broadband…). Universal service means subsidizing those who choose to live in remote places like Alaska, where the cost of supplying these services is much higher than in the coastal cities. Perhaps they should move…

If I were cynical, I might suspect that the reason that Glenn Beck, Michele Bachmann, and some Republicans are not enthusiastic about getting the most accurate numbers possible, from the census and otherwise, is that they don’t want people to know who is getting federal handouts and who is paying. Probably they don’t want to know themselves.


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: bluestate; federalspending; redistribution; redstate

1 posted on 04/01/2010 6:26:44 AM PDT by SeekAndFind
[ Post Reply | Private Reply | View Replies]

To: SeekAndFind

but it’s not about him


2 posted on 04/01/2010 6:29:50 AM PDT by Doogle (USAF.68-73..8th TFW Ubon Thailand..never store a threat you should have eliminated)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Doogle

Just fill out name, address age and people at home. That’s all you’re required to fill out. No biggie. The “extended version” - mark a big X through it and send that back. NOTB.


3 posted on 04/01/2010 6:32:00 AM PDT by rstrahan
[ Post Reply | Private Reply | To 2 | View Replies]

To: Doogle

Seems like Washington is making sure that the Blue States are actually PAYING for the spending of the Red States. At least that’s what it’s looking like to me.


4 posted on 04/01/2010 6:33:11 AM PDT by SeekAndFind
[ Post Reply | Private Reply | To 2 | View Replies]

To: SeekAndFind

Red states are receiving more money because people are moving from Blue states to Red states. What an idiot.


5 posted on 04/01/2010 6:35:36 AM PDT by Republic of Texas (Socialism Always Fails)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

I think this chart is a definite candidate for the next edition of “How to Lie with Statistics”

He fails on his own terms. Dollars spent per dollar in taxes is completely unrelated to census data. The results of this chart would be the same if everyone or no one returned a census form.

Further, rank is a poor statistic and over emphasizes small differences. Why not correlate the raw statistics instead of rank (ordered statistic).

I’m also very, very suspicious that he uses 2008 election results and 2005 spending. How about 2008 election results and 2009 spending, or better the 2010 budget, the first “Obama” budget?

He does not even bother to show the correlation coefficient, or its signifigance.


6 posted on 04/01/2010 6:44:03 AM PDT by Lonesome in Massachussets (The naked casuistry of the high priests of Warmism would make a Jesuit blush.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind
In 2005, the total population of New England was 14,239,724 people. The six states have 12 Sentators or 1 senator per 1.2 million people.

In the classic south, there are 90 Million with 22 senators works out to about 1 senator per 5M people. So who is over represented?

7 posted on 04/01/2010 6:44:25 AM PDT by central_va ( http://www.15thvirginia.org)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Doogle

We need Fedzilla managing the things he listed, why?

Perhaps DC should get out of the way. The states can manage their resources just fine. Would AK “need” the money if they weren’t hampered by central planners telling them what they can and cannot do with their natural resources? I don’t think so.


8 posted on 04/01/2010 6:45:39 AM PDT by Nickname (2012 - Yes You're Canned!)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Republic of Texas

“States” don’t have jobs, produce wealth, have income, or pay income taxes.

People do. And conservative PEOPLE as a group have higher incomes, pay more taxes, and give FAR MORE to charity than their liberal counterparts.


9 posted on 04/01/2010 6:45:56 AM PDT by MrB (The difference between a humanist and a Satanist is that the latter knows who he's working for.)
[ Post Reply | Private Reply | To 5 | View Replies]

To: central_va

Senators were never intended to be representative of “people”. They were intended to represent their states.


10 posted on 04/01/2010 6:46:40 AM PDT by MrB (The difference between a humanist and a Satanist is that the latter knows who he's working for.)
[ Post Reply | Private Reply | To 7 | View Replies]

To: SeekAndFind

Nice chart, I’m glad I have a 52” monitor.


11 posted on 04/01/2010 6:47:06 AM PDT by Tijeras_Slim (Live jubtabulously! No moobs, please.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: central_va
I'm sure you know this, but when states actually appointed their senators, they were there to counterbalance the smaller states interest over the larger states interest.

The problem is that with direct election, and the erosion of the filibuster, they are just another House of Representatives.

12 posted on 04/01/2010 6:50:04 AM PDT by kosciusko51
[ Post Reply | Private Reply | To 7 | View Replies]

To: Doogle

BS

Michele Bachmann and Glenn Beck have NEVER said not to fill out and return the census.

I couldnt’ get past the first sentence in this propaganda lie.


13 posted on 04/01/2010 7:44:52 AM PDT by Freddd (CNN is down to Three Hundred Thousand viewers. But they worked for it.)
[ Post Reply | Private Reply | To 2 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson