The Moocher Index Tracks the Non-Poor that Receive Government Income Transfers

Tue, Jun 22, 2010

Taxation, Welfare

Dan Mitchell at the Cato Institute has put together a Moocher Index to track which states have the largest number of non-poor people receiving welfare.

A few quick observations. Why is Vermont (by far) the state with the largest proportion of non-poor people signed up for welfare programs? I have no idea, but maybe this explains why they elect people like Bernie Sanders. But it’s not just Vermont. Four of the top five states on the Moocher Index are from the Northeast, as are six of the top nine. Mississippi also scores poorly, coming in second, but many other southern states do well. Indeed, if we reversed the ranking and did a Self-Reliance Index, Virginia, Florida, and Georgia would score in the top 10. Nevada, arguably the nation’s most libertarian state, is the state with the lowest number of non-poor people signed up for welfare.

Q: Why are there non-poor people who are net recipients of government income transfers?

A: Because they have votes that can be bought.

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