The Mismatch of Federal Funds Among States

Some Are Givers, Others Are Takers

I have always assumed that in our federal system, money was generally allocated in a way that could be perceived as fair. I assumed that on a state by state level, what we pay in taxes was approximately equal to what we receive in federal funds. As it turns out, there are a few states that receive far more than their fair share, while others do not get enough! It's surprising to me that despite the disparity, not a lot of people seem to notice. The chart below shows the federal payback for every one dollar spent.

Whoa South Carolina!

For every dollar spent in taxes, South Carolina receives about $8 while Massachusetts receives less than $1. This seems crazy, but it is actually rather simple to explain. For decades in the 20th century, the south was run by Democrats and many Democrats in Congress gained seniority from decades long tenures and were able to earmark huge sums for their states. As a result, states like South Carolina and Louisiana receive tons of federal funds.

One caveat to this is that some federal funds are distributed unevenly because they have to be. Programs such as SNAP go to low-income families, and southern red states tend to have the most people in poverty and so they receive the most aid. But this only explains a part of the difference. 

Interestingly enough, Republican states that argue for shrinking the government and cutting spending actually receive the bulk of federal funds. Look back at the chart and notice that some of the most conservative states appear near the top but many of the most progressive states are near the bottom. So despite the fact that red states depict blue states as "takers," the reverse is actually true. 

Why Bigger Cities Drink More Coffee

Right now it's about 6:30 A.M. and I am sitting out on my porch enjoying a nice home brewed cup of coffee. I typically have this one cup in the morning and some days I will drink another small cup around lunchtime. I have seen some people however who seem to drink upwards of four cups a day and I wondered if this was at all unusual. It turns out that the answer is that it depends.

The average coffee consumption across the United States is about three small cups per day, but people who live in large cities tend to far outdrink those in smaller cities or rural areas. For example, coffee drinkers in New York and Chicago both drink an average of 3 times the national average! That is nine eight ounce cups of coffee per day! I found this fascinating in of itself but I began to wonder why.

I thought about the main reason that people drink coffee and it seems in general that besides enjoying the taste, most people drink coffee for the energy boost that comes with ingesting caffeine. A cup of coffee can do two things, wake up a person who has low energy due to sleep deprivation and energize a person who receives a normal amount of sleep. This makes sense in terms of larger cities. Check out my post about cities that get too big.

People who live in larger cities report higher levels of stress and are more likely to be required to work long hours at a job. Working 50, 60 or more hours a week can be exhausting and drain energy; people really should not work more than 40. The solution: grab a cup of coffee. Additionally, those who work long hours are less likely to have the time to sleep enough each night, which can lead to feeling groggy and again needing more coffee. In this regard it makes sense that cities like New York and Chicago drink so much coffee.

Another thing about big cities that encourages coffee consumption is simply related to stress levels. There is so much hustle and bustle in large cities that people must always be alert and aware of their surroundings. Not to mention the fact that it can be stressful to get around due to road and pedestrian traffic. Letting your guard down in a big city is more likely to bring a negative result. Once again coffee serves as a great way to keep vigilant.

Overall it seems that Americans love coffee regardless of location, those who live in more crowded areas simply indulge more. One of the main things to watch out for about coffee is the price! Drinking three or four cups of Starbucks coffee per day can easily amount to a $10 habit.