The number of counties dependent on government aid has surged over time. The lead chart shows political party affiliation.
The Wall Street Journal has a great article on the Growing Reliance of Americans Are Dependence on Government Aid over time. That is a free link.
Americans’ reliance on government support is soaring, driven by programs such as Social Security, Medicare and Medicaid.
That support is especially critical in economically stressed communities throughout the U.S., many of which lean Republican and are concentrated in swing states crucial in deciding the presidential election. Neither party has much incentive to dial back the spending.
The big reasons for this dramatic growth: A much larger share of Americans are seniors, and their healthcare costs have risen. At the same time, many communities have suffered from economic decline because of challenges including the loss of manufacturing, leaving government money as a larger share of people’s income in such places.
This spending accounts for a big and growing share of the national debt. But this year’s presidential candidates, Democrat Kamala Harris and Republican Donald Trump, have said little about reining it in. In fact, both have offered plans that would add to the costs. Trump would end taxes on Social Security benefits. Harris would expand the Earned Income Tax Credit for lower-income workers and extend Affordable Care Act subsidies that are due to expire, among other proposals.
The data help explain why. Though counties that rely significantly on government spending tend to be small, they are still home to nearly 22% of the U.S. population.
Counties at least 25 Percent Dependent on Government Aid
In 2000 there were about 300 countries dependent on Government assistance. Now there are nearly 2,000.
Battleground States
Many of the counties that rely heavily on government safety-net and social-program money have this in common: They are clustered in the battleground states that will decide the presidential election.
About 70% of counties in Michigan, Georgia and North Carolina are significantly reliant on the government income. So are nearly 60% of counties in Pennsylvania. In Arizona, 13 of the 15 counties are heavily reliant on safety-net income.
Measured another way, more than 44% of Michiganders live in counties that are significantly reliant on the government programs. In Arizona, Pennsylvania and North Carolina, more than a third of the populations live in such counties.
Spending on these programs has outpaced the income people earn from other sources, the EIG analysis shows. Meanwhile, pressure from a graying population won’t let up: By 2060, nearly a quarter of the U.S. will be at least 65, the Census Bureau projects.
Wow.
And Trump thinks Tariffs will help. All Tariffs will so is raise prices.
For discussion, please see Trump Claims Tariffs Will Reduce the Trade Deficit. Let’s Fact Check.
I will have a second article on tariffs and price impacts later this week.
Also see Ridiculous Answers from Harris and Trump Regarding Food Costs