The Most Socialist States in America
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The Street
| 26 Nov 2010 | 01:47 PM ET
cnbc.com
When the Democratic Party took over the presidency and both houses of Congress in 2008, conservatives were quick to warn their supporters of a coming era of socialism led by President Barack Obama.
Indeed, that message was a constant in the debate over the health care reform bill as well as the Congressional midterm elections, when Tea Party conservatives made taxation a rallying cry for frustrated Americans.
As the narrative of the country’s purported move toward socialism persists, MainStreet decided to evaluate which states were the most and least socialist, to get a picture of how diverse the country is in how states manage their finances.
What is 'Socialist,' Anyway?
To evaluate the degree to which different states manifest socialist principles, we started from the core definition of socialism as a form of government in which the state owns the means of production and allocates resources to its citizens at its discretion.
In other words, a purely socialist state is one in which the state is responsible for 100% of economic output and spends all of it on social programs.
Since no part of the U.S. can be considered purely socialist, we measured total expenditures as a proportion of total economic output to compare the size of the public sector in each state. Using recently released 2009 state gross domestic product figures from the U.S. Bureau of Economic Analysis and total state expenditures for fiscal year 2009 from the most recent report of the National Association of State Budget Officers, we have come up with the 10 most socialist states in America.
Read on; the results may surprise you. (Or jump to — Alaska?!)
10. Rhode Island
Gross Domestic Product (2009): $47,837,000,000
Total State Expenditures (FY 2009): $7,587,000,000
Expenditures as Proportion of GDP: 15.9%
On the list of most socialist states, tiny Rhode Island takes the 10th spot. Progressive on many social questions (the state was the second to abolish the death penalty, and was the third to legalize marijuana for medicinal purposes), its residents have voted for Democrats in eight of the last nine presidential elections.
Economically, Rhode Island continually ranks among the states with the highest tax rates. Its property taxes, sales tax and income taxes are all above the respective national averages, not surprising for the 10th most socialist state on our list.
9. Hawaii
Gross Domestic Product (2009): $66,431,000,000
Total State Expenditures (FY 2009): $11,822,000,000
Expenditures as Proportion of GDP: 17.8%
8. Arkansas
Gross Domestic Product (2009): $101,818,000,000
Total State Expenditures (FY 2009): $18,403,000,000
Expenditures as Proportion of GDP: 18.1%
7. Wyoming
Gross Domestic Product (2009): $37,544,000,000
Total State Expenditures (FY 2009): $7,123,000,000
Expenditures as Proportion of GDP: 19.0%
6. Mississippi
Gross Domestic Product (2009): $95,905,000,000
Total State Expenditures (FY 2009): $19,380,000,000
Expenditures as Proportion of GDP: 20.2%
5. New Mexico
Gross Domestic Product (2009): $74,801,000,000
Total State Expenditures (FY 2009): $15,455,000,000
Expenditures as Proportion of GDP: 20.7%
4. Vermont
Gross Domestic Product (2009): $25,438,000,000
Total State Expenditures (FY 2009): $5,341,000,000
Expenditures as Proportion of GDP: 21.0%
3. Alabama
Gross Domestic Product (2009): $169,856,000,000
Total State Expenditures (FY 2009): $46,558,000,000
Expenditures as Proportion of GDP: 27.4%
2. Alaska
Gross Domestic Product (2009): $45,709,000,000
Total State Expenditures (FY 2009): $14,315,000,000
Expenditures as Proportion of GDP: 31.3%
1. West Virginia
Gross Domestic Product (2009): $63,344,000,000
Total State Expenditures (FY 2009): $20,362,000,000
Expenditures as Proportion of GDP: 32.1%
- Greg Bocquet is a writer for MainStreet, part of TheStreet Network.
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