Give and Take

Where tax money gets spent by government matters.  Some states take in  more dollars in federal spending than their citizens pay out in taxes.

Good citizens pay their taxes to the federal government. Other citizens in greater need  receive distributions from  central treasuries.  Taxes are also spent on more generic services like  highways, military, and science research benefiting us all.  

Being a curious sort of fellow, I decided to go look at raw data and see who was taking and who was giving.  Below are documented the results of my quest.


Top 10's

The top 10 states that give more than they take from our common coffers are largely Democratic states.  Nebraska and Texas are the only two Republican leaning states in the top 10 whose citizens are net givers to other states. 

The division between those states who take the most per person does not fall into party lines.  Taker states seem to be largely rural, poor, or remote.


Total Contributions

When the total contributions by Republican and Democratic states is added together and average, there are some startling results.

The data shows that, in total, Democratic states give more in taxes than they receive in benefits.  

States that are Republican controlled states take much more benefits all together than they pay in taxes.  

Neutral states are those that have less than a 25% majority Democrat or Republican.  These states are also net takers, but less so than Republican states.

Democratic states tend to be more populous than Republican states, thus the bars are not identical in size.

Nationally, Democrats gave each spent $1,114 more in taxes than they received in benefits and services.  Republicans took $1,540 each on average.  States with Neutral party affiliation took an extra $1,467 per person.

States that Lean Heavily Democratic

Democrats Divisions

Heavily Democratic states are a mixed bag of givers and takers.  

I could find no clear trend in the most Democratic states were takers rather than givers when considered along party lines.  

The data indicates there is a broader trend for states leaning Democratic to pay more even though the most Democratic states do not always give more.

States that Lean Heavily Republican

Republican Takers

Heavily Republican states were much more likely to take more from the taxes than they gave in.  

These states are often rural or poor.  Of course not all rural and poor states are Republican. 

These taker states tend to be in the south and west.  

It is telling that there is a lack of major east and west coast states from the taker lists.  

Givers and Takers

In the chart below, the states are ranked by how much they contribute or take from the general federal taxes by large green and red bars.  The thin blue (Democratic) and thin red (Republican) bars indicated the strength of the part in each state.  Clicking on the graphic will provide an expanded view.

Conclusions 

Pundits have been saying that Democrats are a nation of 'takers' while Republicans are 'givers' whom Democrats take from.  Even Presidential candidates have used this idea as campaign strategy.  

The Givers and takers argument has become a center of our economic debate.  It now seems common wisdom that some people give more and other people take more and that they can be divided upon party lines.  

The facts, however, disagree.  It turns out that on average Democrats give more taxes per person and Republicans take more benefits per person.  Perhaps it is time to change the common wisdom?


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Methods and Sources

First came taxes and spending divided by how many people are in each state.  This yielded an average giving or taking by person allowing apples-to-apples comparisons.  

Next was counting the political parties of state and federally elected officials, including Governors.   Averaging Democrats and Republicans Congressmen at a state and federal level gave a % Party Factor. A reasonable means to indicate if a state leaned heavily to one party or another.

Myth of the Makers (Part 3)

In this series we are examining the libertarian economic myth that a small number of people are makers and that the rest of the society are takers. It attempts to show that this world view is false and works against society, not for it.

In Part 3 we continue examining the list of assumptions about the superiority of the Makers showing in counter arguments how theses assumptions lead us to false ideas about how society works.

Without Makers Society Collapses

Backyard inventor.

It is true that not everyone can invent the next great thing. Not everyone is able to write new music. Most people are unable to design their own cars. But to suggest that only a select few can do these things is easily disprovable. We have an over abundance of makers.

There are many people who can and do invent. Most inventions are never monetized, made in a factory and reproduced for all. Inventions that never leave the garage, the kitchen table, the hobby room are purely for the local benefit of those who invent and there close associates. Human beings are in fact very creative in finding new ways to solve old problems. Steven Wozniak was not the only computer hobbyist who invented a personal computer.

Land of tinkering.

The number of talented garage and bar bands in my country alone is astounding. Every neighborhood has an aspiring string quartet, guitar hero, or closet rapper. So many more songs are written and performed than go public as to make us literally awash in musical talent. Madonna is not the only creative musical artist to write a catchy tune.

In garages and small commercial buildings all around the land are individuals and small groups who design their own vehicles. From three wheeled custom motorcycles to flying cars, our nations ability to develop new means of moving ourselves around boggles the imagination. To suggest that only Mr Ford, Mr. Oldsmobile, and Mr. Harley are capable of designing vehicles is obviously not so.

Robber barons showing self interest.

It is the access to resources that divides Steve Wozniak, Madonna, and Mr. Ford from the general masses. Many have tried and failed at achieving the level of success enjoyed by people like these. Some fail because of personal inabilities. Most fail for lack of access to resources.

As the Small Business Administration has documented, most business fail because of lack of experience, insufficient money, and poor location. They do not fail because of the people are incapable. Rather, they fail because they have not been given the room to gain experience, have access to resources, and being given access to the right location. Those who control the resources shut out those who do not, unfairly limiting their own competition.

Labor farmed by greed.

Makers know best how to use resources.

Makers make decisions about how to use resources for their own personal interest. Few makers choose to allocate their resources for the greater good. This self interest often leads to a depletion of a shared resources by individuals, acting independently and rationally according to each one's self-interest, despite their understanding that depleting the common resource is contrary to the group's long-term best interests. Makers must be monitored and restrained by society in order to ensure that the Makers self interest does not damage the whole of society. Selfish makers can hurt us all.

The idea that selfishness and greed are a societal good is clearly false.  It is an argument that tries to justify immorality as a virtue.

Those who would tell us that they should get all the results of 'their labors' are actually trying to confuse us.  Ayn Rand's philosophical views has been perverted by a new generation of robber barons.

The division of society in to Makers and Takers is mythic attempt by a few to take even more from the labor of us all.

First - Part 1 – Part 2 – Part 3

Myth of the Makers (Part 2)

In this series we are examining the libertarian economic myth that a small number of people are makers and that the rest of the society are takers. It attempts to show that this world view is false and works against society, not for it.

In Part 2 we examine the first few assumptions and counter arguments in more detail.

U.S. Wealth distribution.

Makers Create Wealth

There are three definitions of wealth: Things that make people better off, the value of things, and the total assets of individuals.

Not all wealth is about money. Wealth is also about life, liberty and happiness. Those who focus only on money as a definition of wealth are limiting the value that human beings have to an arbitrary counting system for their own benefit.

Billion dollar mansion
under construction.

The land a farmer hands on to his children is his wealth, not just the crops he takes from the land. The care a mother gives her children is her wealth, not just the money she spends on them. The labor we give to those challenged by natural disaster is often more about just showing up and lending a hand. Wealth is more than money.

The majority of the wealth in a society is not created by the individuals who control it.  Rather it is inherited.  Huge fortunes made in one generation are handed down from father to son creating an oligarchy of power.  The descendants of wealth benefit from the labor of others without providing in return.  Wealth is concentrated by family more than effort.

Obligation to give back.

Makers Act Alone

No maker became a maker without society. Without their parents Makers would not have been given the basic food, shelter, and clothing necessary to grow up. Without schools provided by the local society they would not have had the chance to be educated enough to become Makers. Without national society Makers would not be safe from enemies. Makers could not exist without the society they come from. Makers have an obligation to that society to return what has been given them.

Making is a team effort.

Most things that are made require many hands of effort in order for the thing to be made. No one Maker designs and builds the radio in your car. No one Maker plants, grows, transports, and sells his food unless they are in a small limited, local market. No one Maker builds their own factory by hand and runs it by themselves. Makers live in an interconnected society. To separate themselves from the society is to act against the society which created them.

Garage inventions

Few People Are Makers

Actually most people are makers to one degree or another. My mom was a maker of meals and households. My Dad made torpedo targets. My wife makes documents so people can learn to use tools made by others. My friend makes clean bathrooms and floors so we remain healthy and feel good about our environment. Each of these people make more than these things. All responsible people make things through effort of labor. Sometimes they are rewarded by money. Sometimes they are rewarded by love, or happiness, or life, or liberty. Almost everyone is a maker of some kind.

Makers Always Benefit Society.

Destruction of the commons.

Many people make things for bad ends, even on purpose. The strip club owner employees girls who may not make money otherwise, but drags down the potential of all the other daughters. The Heroin dealer makes money distributing a product that does evil. Cigarette makers do far more damage than good for society. It is difficult to find an argument why Swastika makers help people. Some makers can hinder society.

Lungs after cigarettes.

Most makers do have a positive good result in what they make. The products and services of many makers have negative side effects that can sometimes over weigh the good that they do. Even those without bad intent can do damage though. When the focus of the maker is on making money and not making good, makers can do great evil.

Next - Part 1 – Part 2 – Part 3

Myth of the Makers (Part 1)

At the heart of the conservative economic argument is the idea that a small number of people make things, while everyone else lives off their ability. These special few who are the designers, inventors and creators that provide the masses with goods and services. The libertarian view expounds that the general public should cater to the needs of these special few so that everyone else can benefit from the their genius.

The selfish man carries the
world on his shoulders?

The basic philosophy of the conservatives is based on the idea of the 'Virtue of Selfishness'.  It argues that  businessmen, innovators and builders are 'Makers'. 

Makers provide things everyone needs. Makers are superior humans due to their skill, talent, and force of will. Makers act in their own self interest using their genius,talent, and creativity to provide things for many other people. Makers add value to their community and are rewarded in return by money and power. When the society diverts resources from the makers, it is essentially an evil that will ruin all.

This view of selfishness as a 'moral good' has as one of its basic ideas that most people are not Makers, rather, most people are 'Takers'. Takers use the things and services given them by the Makers. Takers are inferior humans because they lack skill, talent and/or will. Takers act in their own self interest taking away from the makers, giving nothing in return; essentially stealing from the Makers. Takers drag down society and will ruin it all because they divert the resources of the Makers.

What selfishness means.

There are several assumptions to the Makers argument. They are:

1. Makers create wealth.
2. Makers act alone.
3. Few people are Makers.
4. Makers always benefit society.
5. Without Makers society collapses.
6. Makers know best how to use resources.

Every one of the assumptions about Makers can be challenged using reason. The concept of Makers and Takers can be dis-proven as rationalized myth. These stories about Makers serve only the purpose of allowing a few people with power to maintain that power. The myth of the maker is therefore propaganda.

Unselfish acts of labor.

Here is a brief list of the reasons the assumptions of the makers are false:

1. Wealth is more than money.
2. Makers have an obligation to society
3. Makers are in an interconnected society
4. Everyone is a maker.
5. Makers can hinder society.
6. Makers can do great evil.
7. We have an over abundance of makers.
8. Those who control the resources shut out those who do not.
9. Selfish makers can hurt us all.

Over the next two posts, I'll be examining each one of the assumptions about Makers demonstrating how the logic used in these arguments does not hold up to the facts of the reality we live in.

Next - Part 1 – Part 2 – Part 3