It's what you believe that ain't so that's the problem

kenworthy1 An American writes in The Guardian:

When an American talks about a “welfare state”, they’re talking about scattered programmes such as food stamps, tiny cash benefits and milk and formula vouchers for infants and pregnant women, which together provide a fraction of the benefits a British citizen is entitled to.

This is not in fact so. As that little chart shows. It comes from Lane Kenworthy, one of the better researchers into inequality and poverty in the US. The definition of the chart is:

Figure 6. Tenth-percentile household income Posttransfer-posttax household income. The incomes are adjusted for household size and then rescaled to reflect a three-person household, adjusted for inflation, and converted to US dollars using purchasing power parities. “k” = thousand. “Asl” is Australia; “Aus” is Austria. The lines are loess curves. Data sources: Luxembourg Income Study; OECD.

And his comment upon it:

OUR POOR AREN’T ESPECIALLY WELL-OFF America’s affluence doesn’t trickle down to everyone in a straightforward fashion. As figure 6 shows, the income of US households on the lower part of the income ladder is below that of their counterparts in many comparator nations.

Below that in many countries and as the chart shows, above that here in the UK. The point being that America provides a standard of living to its poor very much the same as those provided by the supposedly much more generous European countries. All are managing something between $10k a year and $30k and the US is slap bang in the middle.

All of which brings to mind Mark Twain's aphorism, that it's not what you don't know that's the problem, it's what you believe that ain't so that is. The US does have a welfare state and it produces much the same result as those of other countries.

However, there is one major difference. Which is that the US is a much more unequal country, even after the influence of that tax and benefit system. And we, being the pure utilitarians that we are, think that's fine, that's great even. For we do run with the idea that a certain minimum is going to be provided to those who cannot provide for themselves. We might argue about how that is done but we're fine with the basic set up. But once that is achieved we want the greatest good of the greatest number. And that means that once that minimum is in place then we want everyone above it to be able to thrive as much as possible.

Which is exactly what the American system provides of course: and is the explanation for that greater inequality. Because they only worry about providing that minimum, and not the inequality itself, then they tax the rest of society less, allowing it to thrive more. Sounds like a plan to us.