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Tuesday, June 12, 2007

Can Oregon break the mold?

Redistributing Poverty

In theory, redistribution of wealth is supposed to benefit the least fortunate. In practice, however, it doesn't necessarily work out that way. In a new study, "How to Win the War on Poverty: An Analysis of State Poverty Trends", Matthew Ladner of the Goldwater Institute and Paul J. Gessig of the Rio Grande Foundation crunch census data for the 1990s and find that the poor did much better in states with low taxes and low spending than in states with higher taxes.

Big-spending, high-taxing states saw increases in poverty rates, despite a national economic boom. On average, big spenders in Alaska, Connecticut, Delaware, Hawaii, Massachusetts, New Mexico, Rhode Island, Vermont and Wyoming saw a 7.6 percent increase in poverty rates, while cheapskates in Arizona, Florida, Georgia, Indiana, Missouri, Nevada, New Hampshire, Oklahoma, Tennessee, and Texas saw their poverty rates drop neary 10 percent.

Note: Oregon's political leaders are increasing state spending in the next biennium by about 20%.

Reason Magazine, July 2007

1 comment:

Anonymous said...

From my side of the fence, I agree with this comment. Higher taxes to provide more and more entitlements does more to harm the individuals receiving assistance than it does to help them. I own a convenience store. I see them all day, the same ones, walking up and down the street. They come in and stock up on pop, beer, cigarettes and snacks. We prefer not to hire somebody on assistance because they don't want to work. They won't stay on the job. With all the money going to support them and their families, they don't need to work either. They are being made lazy. They don't learn to be self sufficient, but rather demanding of everything. Don't get me wrong, there are those that definitely need the help. Many just use it and as long as it's provided to them in abundance, why should they do anything for themselves. They would be helped much more by being required to provide for themselves. Idle time is the devil's workshop. And does he have a field day

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