A reminder that the money flows from blue states to red

Observers couldn’t help noticing, however, that some of the Kentucky politicians asking for aid — notably Senator Rand Paul — had in the past not only opposed aid for other disaster-struck states but sneered at their pleas. What should we make of this hypocrisy?

The truth is that it runs deeper than “aid for me but not for thee.” Remarkably, if you look at how the federal budget affects U.S. regions, there’s a consistent pattern in which conservative states that preach the importance of self-reliance are in fact heavily subsidized by liberal states.

[...]

Topping the list of net beneficiaries was, yes, Kentucky, where residents received an average of $14,000 more from Washington than they paid in taxes. To put this in perspective, Kentucky’s 2019 net inflow of federal funds — $63 billion — was roughly 30 percent of the state’s G.D.P. that year.

[...]

And that’s OK! The main reason Kentucky is such a large net recipient of federal funds is that the state is relatively poor — it’s in a region that has to some extent been economically stranded as production and wealth concentrate in large, highly educated metropolitan areas. As a lower-income state, Kentucky receives the full benefit of federal programs like Medicare, but pays relatively little in income or payroll taxes, so it gets much more than it pays in. And that is actually how the social safety net is supposed to work. We want individuals who for whatever reason are hurting financially to receive support from the more fortunate, which necessarily implies large transfers from rich states like New Jersey to lower-income states like Kentucky.

What’s not OK is when states that are huge net beneficiaries of progressive taxation and the social safety net preen and posture about self-reliance and the evils of big government. It’s even worse when they assert some kind of moral superiority over the metropolitan areas that pay their bills.

  NYT

...but hey, do what you want...you will anyway.