Welfare State

Doug Henwood dhenwood at panix.com
Sat May 11 12:23:43 PDT 2002


Nathan Newman wrote:


>But out of a $2 trillion federal
>budget, and about another trillion dollars at the state and local level, the
>money goes overwhelmingly to poor and working class folks.

Overwhelmingly? Could you be a bit more specific? The U.S. welfare state, such as it is, does very little to reduce poverty - i.e., compared to other countries, it barely adjusts market income distributions. Thanks to the mortgage interest tax deduction, the bulk of federal housing subsidies go to upper income households - over 75% of benefits go to the top two income quintiles <http://www.nlihc.org/pubs/cpgraph5.htm>. Social Security is mildly redistributive, which is a blessing, but it's under constant attack, and I underline "mildly." Military, cop, and prison spending can be said to benefit working class soldiers, cops, and wardens, but that's probably not what you have in mind, is it? So just what are you talking about?

Doug



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