Saturday, October 22, 2022

Rural America Being Deceived

 Paul Krugman explains why rural America is in the tank. They are hurting but they don't realize that Republicans will make it worse. And Democrats are making real strides in making it better.

Political scientists have found that rural Americans believe that they aren’t receiving their fair share of resources, that they are neglected by politicians and that they don’t receive enough respect. So it seems worth noting that the first two beliefs are demonstrably false — although I’m sure that anyone pointing this out will be denounced as another sneering member of the urban elite.

The truth is that rural America is heavily subsidized by urban America. You can see this by looking at states’ federal balance of payments — the difference between federal spending in a state and the amount a state pays in federal taxes.

for the most part this subsidization of rural America reflects the nature of our social safety net rather than explicitly favorable treatment. Rural areas are relatively poor, old and sick. This means that they pay fairly little in federal taxes while receiving large benefits from Social Security, Medicare and other government programs.

But there is also considerable aid targeted directly on rural areas. Most notably, in 2020 Donald Trump sent $46 billion in aid to farmers. To get a sense of how huge this was, note that these days there are only about two million farms in America, and annual net farm income is only about $150 billion.

So the idea that the government discriminates financially against rural areas is the opposite of the truth. That said, it’s true that rural areas are hurting economically, despite receiving a great deal of aid.

The modern economy, with its growing focus on knowledge-intensive industries, tends to favor metropolitan areas with highly educated work forces. And highly educated workers also tend to prefer such areas, so the drift of economic opportunities away from small-town and rural America is a self-reinforcing process. Jobs, especially good jobs, are becoming scarce outside the big metros.

While rural woes are real, however, it’s hard to see how supporting right-wing politicians makes sense as a response to these woes. Republicans in Congress have made it clear that if they take control, they will try to slash the safety-net programs that do so much to support rural America. On the other side, Biden administration actions, especially the subsidies associated with climate policy, represent a serious effort — one that has no G.O.P. counterpart — to bring jobs back to declining regions in the heartland.

When commentators call on Democrats to address rural needs, well, they’re actually doing that — certainly more than Republicans, who are preparing to pull the rug from under programs that rural areas depend on. When people call on urban elites to end their disrespect for rural Americans, well, perceptions about such disrespect may not have much to do with reality.

rural perceptions are so much at odds with reality, and rural America is becoming so monolithic politically, that it’s hard to imagine that they’ll have much success.

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