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June 17, 2010
Overnight Open Thread
Happy Thursday all.
Here Veronique de Rugy introduces a new metric by Dan Mitchell that tries to determine whether some states do more income re-distribution than others. So he took the percentage of state residents who receive some form of welfare and subtracted the percentage who fall under that state's poverty level. The difference then is the percentage of 'non-poor' people who are getting welfare i.e. 'moochers'. Dan observes:
Why is Vermont (by far) the state with the largest proportion of non-poor people signed up for welfare programs? I have no idea, but maybe this explains why they elect people like Bernie Sanders. But itís not just Vermont. Four of the top five states on the Moocher Index are from the Northeast, as are six of the top nine. Mississippi also scores poorly, coming in second, but many other southern states do well.Commenters on his site suggest that Mississippi and Alaska's high Mooch indexes are due to agricultural subsidies and the state oil dividend.
And if you compare the Mooch Index with this chart of the tax burden of each state, it turns out that 5 of the top 10 mooching states also have some of the country's highest effective tax rates. Which means that there's a lot of income re-distribution going on in Vermont, New York, Rhode Island, Hawaii and Connecticut. Based on that I guess it's really no surprise at all that Vermont would elect an avowed Socialist.
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Yahoo group. That is all.
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