• Login
thinkcivics.
Subscribe
Join Us
  • Culture & Society
  • Economy
  • Health & Science
  • News & Politics
  • Religion
  • Technology
  • World
No Result
View All Result
tc.
  • Culture & Society
  • Economy
  • Health & Science
  • News & Politics
  • Religion
  • Technology
  • World
Subscribe
Join Us
No Result
View All Result
thinkcivics.
Home News & Politics

Here’s the List of the Top 20 States Getting ‘COVID’ Bailout Money (And Why It Raises a Giant Red Flag)

It’s simply naive and ignorant of human nature to expect people—especially the kind of people who become politicians—to dole out trillions of dollars without any hint of favoritism or impropriety.

ThinkCivics Newswire by ThinkCivics Newswire
March 18, 2021
in News & Politics
Reading Time: 5min read
0
0
Here’s the List of the Top 20 States Getting ‘COVID’ Bailout Money (And Why It Raises a Giant Red Flag)

Image Credit: YouTube Screenshot, Fox Business

Article Table of Contents hide
1 State Bailout Money Was Never Necessary
2 Top 20 States By ‘COVID’ Bailout Money
3 The Only Explanation is Political Favoritism

President Biden is taking a victory lap after signing his $1.9 trillion ‘COVID’ spending bill. “Help is here,” he wrote in a tweet promoting his plan. 

Our work relies on the support of readers like you. Please consider supporting us at PayPal or Patreon, to help sustain our journalism.

But Americans who are initially glad to hear that more ‘COVID’ relief is supposedly on its way may be surprised when they learn that the latest legislation funnels $350 billion in unneeded taxpayer money to flush the coffers of state and local governments. 

Get Our Weekly Newsletter and Get Smarter

Receive a weekly recap featuring a curated list of must-read stories.

We agree to have my personal information transfered to MailChimp ( more information )

We will never give away, trade or sell your email address. You can unsubscribe at any time.

State Bailout Money Was Never Necessary

In the president’s telling, this is much-needed aid that will allow municipal governments facing massive COVID-related revenue pitfalls to pay their front-line emergency responders and essential personnel. But the facts reveal a different story.

While it’s plausible on its face to think that COVID would have led to a revenue drop for state and local governments, this never materialized in most places. According to JP Morgan, state revenue was “virtually flat” in 2020 nationwide while 21 states actually saw slight revenue upticks.

Cato Institute economist Chris Edwards noted that while there was a significant downturn in state revenue in the second quarter of 2020, overall it was balanced out by an uptick in the third quarter. “There is no need for more federal aid to the states,” he concluded.

Image Credit: Cato Institute

So, the $350 billion in state “aid”—which cost roughly $2,442 per federal taxpayer—Congress  just passed wasn’t actually necessary. What’s the driving motivation behind it, then? This becomes clearer when we consider which states are getting the most taxpayer cash. 

Top 20 States By ‘COVID’ Bailout Money

Here are the 20 states receiving the most money from the latest spending legislation.

  1. California: $42.3 billion
  2. Texas: $27.3 billion
  3. New York: $23.5 billion
  4. Tribal Governments: $20 billion
  5. Florida: $17.3 billion
  6. Illinois: $13.5 billion
  7. Pennsylvania: $13.5 billion
  8. Ohio: $11 billion
  9. Michigan: $10.1 billion
  10. New Jersey: $10 billion
  11. North Carolina: $8.7 billion
  12. Georgia: $8.17 billion
  13. Massachusetts: $7.96 billion
  14. Arizona: $7.48 billion
  15. Washington: $6.94 billion
  16. Virginia: $6.68 billion
  17. Maryland: $6.21 billion
  18. Tennessee: $6.12 billion
  19. Colorado: $5.9 billion
  20. Indiana: $5.7 billion

At first glance, it’s hard to decipher a clear pattern on this list. It’s not ordered by population, otherwise Florida would be above New York and Georgia would be above New Jersey. So, how did they divvy up the money?

Curiously, the Biden administration and Democrats in Congress factored in not just population but also the number of unemployed citizens. This had the direct effect of skewing the bailout benefits toward states that enacted harsher lockdowns and punishing states who prioritized preserving economic activity.

It must be noted that the list is skewed to include more “blue” states that voted for Biden, 13, than “red” states that voted for Trump, 6. It was, in many cases, Republican governors who opted for lighter restrictions and abandoned harsh lockdowns. In states like Florida, this has averted the unemployment and social destruction other states experienced—without producing noticeably worse COVID deaths.

The Only Explanation is Political Favoritism

One could argue that perhaps focusing on the unemployment rate is meant to ensure the aid goes to the states shortest on revenue. But why not use actual revenue shortfalls, then? Indeed, California tops the list for bailout money, yet the Golden State is actually running a budget surplus! 

The only conclusion left to draw, however disappointing, is that Democrats crafted this bailout’s structure to favor states who pursued the COVID-19 policies they agree with—aka, states run by Democrats. Suffice it to say that political favoritism should never determine how limited taxpayer money is spent.

But, unfortunately, cronyism and favoritism are features, not a bug, of big government spending programs. As economist Ludwig von Mises once explained, big government programs concentrate enormous spending power in the hands of a few political officials; all but ensuring that favoritism follows. 

“There is no such thing as a just and fair method of exercising the tremendous power that interventionism puts into the hands of the legislature and the executive,” Mises wrote. “In many fields of the administration of interventionist measures, favoritism simply cannot be avoided.” It’s simply naive and ignorant of human nature to expect people—especially the kind of people who become politicians—to dole out trillions of dollars without any hint of favoritism or impropriety.

Read: Democrats Seek to Radically Transform American Politics With H.R. 1, For the People Act

It’s simply naive and ignorant of human nature to expect people—especially the kind of people who become politicians—to dole out trillions of dollars without any hint of favoritism or impropriety. So, while Americans will understandably be angered by the way Congress has carved out hundreds of billions for state governments that don’t need it, they’d be wrong to think this is a one-time mistake.

Corruption and dysfunction are baked into the cake when we entrust the government with vast economic powers. 

Brad Polumbo

Brad Polumbo

Brad Polumbo (@Brad_Polumbo) is a libertarian-conservative journalist and Opinion Editor at the Foundation for Economic Education.

This article was originally published on FEE.org. Read the original article.

ThinkCivics Newswire

ThinkCivics researches, examines, and reports on issues that matter most. We deliver explanative, fearless, and insightful analysis for public consumption.

thinkcivics.com
Tags: BailoutBidenCongressCovid-19State Government

Related Posts

As protesters on left and right target public servants at home, one city pushes back

As protesters on left and right target public servants at home, one city pushes back

April 11, 2021
Trump Lashes His Enemies Anew as G.O.P. Dances Around His Presence

Trump Lashes His Enemies Anew as G.O.P. Dances Around His Presence

April 11, 2021

Biden Admin Considering Cash Payments to Central America to Control Migration

April 10, 2021

Will Biden ‘Pack’ the Supreme Court?

April 10, 2021
Load More
Next Post
Pricing Reveals True Value of Huawei’s 5G Patents

Pricing Reveals True Value of Huawei’s 5G Patents

President Biden Delivers Remarks On American Rescue Plan

President Biden’s Cabinet: Assemble!

The Fed will not extend a pandemic-crisis rule that had allowed banks to relax capital levels

The Fed will not extend a pandemic-crisis rule that had allowed banks to relax capital levels

Staff Editorials

Governor Brian Kemp Tours Delta Mass Vaccination Site
Culture & Society

Georgia Corporations Cave to Activists On Voter ID Law. Republicans Hit Back Where It Hurts.

by Michael Price, MPA
April 9, 2021
Close Up Of Boxing Gloves
News & Politics

Now Is The Time for America to Make Room for a Third-Party. Voters Deserve Better!

by Samantha DeTurk
April 5, 2021
Vaccine Passports Pose Privacy and Discrimination Concerns Says Health Experts and Digital Privacy Advocates
Health & Science

Vaccine Passports Pose Privacy and Discrimination Concerns Says Health Experts and Digital Privacy Advocates

by Michael Price, MPA
March 29, 2021
Rep. Jackie Speier, House Speaker Pelosi And Congressional Democrats Mark Vote On The Equal Rights Amendment Ratification
Culture & Society

The Left Pushes for Ratification of the ERA with President Biden’s Support

by Josh Herrington
March 25, 2021
The Bipartisan ‘Endless Frontier Act’ Increases Tech Research Spending to $100bn Annually to Outcompete Communist China
Technology

The Bipartisan ‘Endless Frontier Act’ Increases Tech Research Spending to $100bn Annually to Outcompete Communist China

by Keefer Novik
March 24, 2021

Recommended

Australian Senator’s Motion for Big Tech Committee Stalls

Australian Senator’s Motion for Big Tech Committee Stalls

3 weeks ago
A Year After Ending Her Presidential Bid, Warren Wields Soft Power in Washington

A Year After Ending Her Presidential Bid, Warren Wields Soft Power in Washington

3 weeks ago
Buttigieg Asks Congress for ‘Generational Investment’ in Infrastructure

Buttigieg Asks Congress for ‘Generational Investment’ in Infrastructure

2 weeks ago
Facebook Data From More Than 500 Million Users Found Online

Facebook Data From More Than 500 Million Users Found Online

1 week ago

Categories

  • Culture & Society
  • Economy
  • Editorials
  • Health & Science
  • News & Politics
  • Religion
  • Technology
  • World
No Result
View All Result

Highlights

Biden Admin Considering Cash Payments to Central America to Control Migration

In 5-4 vote, Supreme Court lifts California’s COVID ban on group Bible study in homes

Will Biden ‘Pack’ the Supreme Court?

McConnell Vs. Trump! Warring Wings Of GOP May Face Off In Alaska Senate Race

What Happened to Biden’s Unity Agenda?

Biden’s border czar is stepping down

What's New

‘Critical Race Theory’ Being Taught at US Army’s West Point: Congressman
Culture & Society

‘Critical Race Theory’ Being Taught at US Army’s West Point: Congressman

by ThinkCivics Newswire
April 11, 2021
0

A Republican congressman said he is looking for answers from the U.S. Military Academy West Point about whether...

As protesters on left and right target public servants at home, one city pushes back

As protesters on left and right target public servants at home, one city pushes back

April 11, 2021
Trump Lashes His Enemies Anew as G.O.P. Dances Around His Presence

Trump Lashes His Enemies Anew as G.O.P. Dances Around His Presence

April 11, 2021
Biden Admin Considering Cash Payments to Central America to Control Migration

Biden Admin Considering Cash Payments to Central America to Control Migration

April 10, 2021
In 5-4 vote, Supreme Court lifts California’s COVID ban on group Bible study in homes

In 5-4 vote, Supreme Court lifts California’s COVID ban on group Bible study in homes

April 10, 2021
Facebook Twitter Instagram RSS

Follow us on social media:

About ThinkCivics

We research, examine, and report on issues that matter most. We deliver explanative, fearless, and insightful analysis for public consumption. Our reports are not presented in confusing academic or political language, we speak Main Street English.

Recent News

  • ‘Critical Race Theory’ Being Taught at US Army’s West Point: Congressman
  • As protesters on left and right target public servants at home, one city pushes back
  • Trump Lashes His Enemies Anew as G.O.P. Dances Around His Presence

Category

  • Culture & Society
  • Economy
  • Editorials
  • Health & Science
  • News & Politics
  • Religion
  • Technology
  • World

© 2021 ThinkCivics Media. All Rights Reserved.

  • Login
No Result
View All Result
  • Home
  • About
  • Store
  • Contact Us
  • ThinkCivics Plus
  • Contribute

© 2021 ThinkCivics Media. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.