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Experiment of the States - Part 4: Welfare And Our Freedoms

This is a continuation of the "Experiment of the States" series.  The significance and purpose of this type of data analysis is explained here.

One would think that there would be a very strong relationship between the states’ public welfare expenses and other economic factors such as unemployment or poverty levels, but these relationships are not that strong across all of the states. For some reason, it depends on the religious values of the states. 
If you look at the chart below, there are a few important trends to realize. Less religious states are more likely to use more welfare even though they have less poverty. There is also no trend between their welfare expenses and poverty levels as you would expect to see. But if you look at the most religious states’ data, there is an obvious trend between poverty and welfare expenses, and this relationship matches an ideal trend based on the fundamental purpose of the program. 

I think this trend could mean one of two things.  Maybe religious states are using welfare only as needed, where the welfare expenditures are proportional to poverty levels, and maybe the less religious states seem to increase government spending with no method to their madness.  Another possible explanation is that states with low poverty and high welfare costs could be utilizing the welfare more effectively, and the lower poverty rates are the result of that.  [Though, with the growing sense of entitlement in our society, I tend to agree more with the first explanation, but I will let the readers decide for themselves.]

The trends below should make you wonder what factors are actually driving the use of welfare. Preferably, these welfare benefits should be used as a hand up out of poverty (rather than just handouts). 




Even though welfare programs have good intentions, they seem to have a few negative effects on our society. According to the data, it seems to have a significant impact to our personal and economic freedoms. 

I believe that two major factors affect our freedoms in this country: debt and the lack of self-reliance, and the amount of welfare expenditures just happens to involve both of these issues. That is probably why the relationship between welfare and freedom is so strong (see chart below).


If the United States is to remain as a nation labeled as a “Land of the Free,” it’s obvious that we must be careful with these types of assistance, or "entitlement", programs. Without the proper use, these policies could have a profound effect on the people of this nation and our outlook of personal and economic prosperity. Our history of unity, hard work, self-reliance, and liberty has been vital to this country’s success, but these core values seem to be diminishing. By looking at this data, the improper use of welfare programs could be an underlying cause. 
As mentioned before in previous parts of this study, it’s important to note that these are just trends at this point. We must be careful not to claim a correlation without causation. It seems plausible that handouts from the government could be having an effect on the people’s awareness of personal responsibility and pursuit of happiness due to a false sense of security and entitlement, but there is another way of looking at this relationship. It is also conceivable that a population that is over their heads in debt and has already lost their sense of self-reliance will require more welfare due to their poverty stricken state of mind. [It's like the chicken or the egg argument.  We do not necessarily know which came first.]

I believe the question we should be asking ourselves is this: how do we reverse the entitlement mindset that is plaguing our nation?  A self-reliant population would require very little welfare (if any at all).  Giving undeserved or unneeded handouts certainly will not solve the fundamental issue. 
Is it the people or policies that affect our personal and economic freedoms in this country? I tend to believe it’s a little bit of both, but the never-ending expansion of government policies is just digging this nation into a deeper hole. I would much prefer the example and efforts of good and prosperous people lead this nation in the right direction rather than rely on the government. 

Sources:
United States’ Census Bureau record of 'Percent of Individuals Below Poverty Level by State, 2008' and 'Personal Income Per Capita by State, 2008'. "The 2012 Statistical Abstract". http://www.census.gov/compendia/statab/(accessed on October 28, 2012). 
Mercatus Center index of 'Personal and Economic Freedom Ranking by State'. Posted on June 7, 2011. "Freedom in the 50 States" by Jason Sorens and William Ruger. http://mercatus.org/freedom-50-states-2011(accessed on October 31, 2012). 
Tax Policy Center record of 'Public Welfare Expense Per Capita, 2008'. Posted on October 17, 2012. "State and Local General Expenditures, Per Capita, 2004-2010". http://www.taxpolicycenter.org/taxfacts/displayafact.cfm?Docid=521(accessed on November 23, 2012). 
Gallup record of 'Importance of Religion'. Posted on January 28, 2009. "State of the States: Importance of Religion" by Frank Newport. http://www.gallup.com/poll/114022/state-states-importance-religion.aspx#1(accessed on October 31, 2012). 

Experiment of the States - Part 3: Movin' On Up

This is a continuation of the "Experiment of the States" series.  The significance and purpose of this type of data analysis is explained here.

Part 3 of this study will focus on a highly talked about topic now-a-days: social mobility and income distribution. 
First, I thought it was interesting that states with large amounts of residents labeled as “top wealth holders in the nation” are much more likely to be liberal. The chart below is comparing the 2004 number of top wealth holders (net worth of over 1.5 million dollars) to the 2009 Gallup poll on the states’ ideologies. I know the years don’t match perfectly on this comparison, but these were the best numbers I could find easily available. And it’s also important to know that the states’ ideologies do not change very drastically over the years, so this relationship should prove to be reliable. 


Now on to the social mobility... You may want to read up on PEW’s report to understand their methodology a little more. It’s basically a rating for how easy it is for people to move up or down in income brackets. With that said, you might find the chart below a little interesting. The data in this chart is all from 2012. 



You’ll notice that the upward mobility goes up as a state becomes more liberal, and the downward mobility goes down. I know what you’re thinking already… “That’s a good thing, right?”  Well, you tell me… Take a look at the hypothetical graph below, and then think about it again. Keep in mind that with these different distributions, there are a few things that you should think about. What is the standard and cost of living? What social classes have the power? Does power come with numbers or money? How will the two extreme social classes (high vs low income) interact? It may not be as clear as you thought.

Sources:
United States’ Census Bureau record of Top Wealth Holders With Net Worth $1.5 Million or More--Number and Net Worth by State: 2004. "The 2012 Statistical Abstract: Wealth". http://www.census.gov/compendia/statab/cats/income_expenditures_poverty_wealth/wealth.html(accessed on October 28, 2012). 
Gallup record of Total Conservative and Total Liberal Populations. Published on August 14, 2009. "'Conservative' Label Prevails in the South" by Lydia Saad. http://www.gallup.com/poll/122333/Political-Ideology-Conservative-Label-Prevails-South.aspx#1(accessed on October 31, 2012). 
Gallup record of Total Conservative and Total Liberal Populations. Published on February 3, 2012. "Mississippi Most Conservative State, D.C. Most Liberal" by Frank Newport. http://www.gallup.com/poll/152459/mississippi-conservative-state-liberal.aspx#1(accessed on October 31, 2012). 
PEW record of Relative Upward Mobility and Relative Downward Mobility. Published on May 10, 2012. "Economic Mobility of the States". http://www.pewstates.org/research/data-visualizations/economic-mobility-of-the-states-interactive-85899381539(accessed on October 31, 2012).