10/08/2024 / By Laura Harris
A new Economic Innovation Group (EIG) analysis has revealed that 70 percent of counties in battleground states now depend on government aid programs.
The EIG study, which examined Social Security, Medicaid, unemployment insurance and food stamps, found that on average, the federal government shoulders about 70 percent of the costs, with states covering the remainder. Notably, spending on military bases and farm subsidies was excluded from the analysis.
According to the findings, many counties in Michigan, Georgia and North Carolina rely on government aid. In Pennsylvania, nearly 60 percent of counties fall into this category and in Arizona, 13 out of 15 counties rely significantly on government support. Overall, more than a third of residents in these states live in areas where government assistance forms a substantial part of the economy.
This increase in government dependence is closely linked to demographic shifts, particularly the aging population. With more Americans entering retirement and healthcare costs rising, programs like Social Security and Medicare have become indispensable for many. (Related: More and more retired Americans returning to work to cope with rising cost of living under Biden’s failing economy.)
For instance, Cambria County, Pennsylvania, which once thrived as a steel manufacturing hub, has seen a prolonged economic downturn with a 10 percent decrease in workforce and businesses since 2000. In turn, 35 percent of residents’ income now comes from government programs.
EIG concluded: “Spending on these programs has outpaced the income people earn from other sources. Meanwhile, pressure from a graying population won’t let up: By 2060, nearly a quarter of the U.S. will be at least 65, the Census Bureau projects.”
The findings shed light on why former President Donald Trump has been resonating with voters in economically challenged regions.
Many of these voters view his promises to protect Social Security and Medicare as essential and counties relying heavily on government support have shifted increasingly Republican in recent elections. Trump, who won 68 percent of the vote in Cambria County in 2020, has vowed to eliminate taxes on overtime wages and Social Security benefits if elected in November.
“Today, I’m also announcing that as part of our additional tax cuts, we will end all taxes on overtime. You know what that means? Think of that,” Trump said during a campaign rally in Tucson, Arizona. “That gives people more of an incentive to work, it gives the companies a lot, it’s a lot easier to get the people.” Trump argued that removing taxes on overtime pay would create a “whole new workforce.”
Trump also reiterated his commitment to eliminating taxes on Social Security benefits during the Tucson rally.
He earlier posted on his Truth Social account that “seniors should not pay tax on Social Security.” All this marks a sharp contrast from previous Republican leaders who sought to cut benefits.
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