Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and beginning April 20th, 2021 (Eastern Time) the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.
Alaskans receive an annual handout from the profits made off of state-owned oil. Is this socialism at work?
- crunchLv 61 decade agoFavorite Answer
Alaskans only recieve money from oil extracted from Alaska "public lands" and just like any "property owner" who has oil discovered under their property, they receive what is better described as a "royalty", a practice of capitalism. The amount of money is tied directly to the value of oil extracted and not as a percentage of profit from the sale of the oil.
Now, if you as a citizen of any state other than Alaska asked for and received money collected from oil extracted from under Alaskan land, that would be socialist.
Edit: I should add that it gets rather tiresome trying to explain what socialism is to socialists. So few of them seem to have a clue.
- 1 decade ago
No capitalism. The taxpayer is like a shareholder of state lands, the oil companies use that land and Alaska gives each shareholder/taxpayer some of the money.
- jeeper_peeper321Lv 71 decade ago
Yep, it is socialism.
On a state level.
But states have different constitutions than the federal government has.
So there is no comparison between the two.
That's why the US is a Republic of 50 States
- coldfuseLv 71 decade ago
It is government making effective use of its property by leasing it.
To varying degrees, it has socialistic features. You do not have to be so dramatic and then call the whole thing socialism. The question is intellectually dishonest, to what purpose we will let you tell us.
- How do you think about the answers? You can sign in to vote the answer.
- PIXIELv 61 decade ago
no.this was tied to the homestead act discontinued in the 80's when they were settled.this was for the lifetime of the mineral rights.nowhere near socialism.try again. google it for yourself.
- 1 decade ago
the people of alaska own its resources. if they choose to sell some off, why wouldn't they be entitled to the money?
- Elwood BluesLv 71 decade ago
The state of Alaska redistributing wealth? Sure is!
And that's part of why it's so outrageous that Palin was seeking federal funds to build the bridge to nowhere. The state is rolling in money; they have more than enough to build the bridge, but if they can squeeze the rest of us, why not?
Actually, it's quite interesting to look at this table of Federal Tax Burdens and Expenditures by State: http://www.taxfoundation.org/research/show/62.html
You'll find that Alaska got $1.87 back for for every dollar paid in Federal taxes. Montana: $1.58 per dollar; Mississippi: $1.77 per dollar; and Arizona: $1.30 per dollar. That's right, Arizona, home of John McCain gets 30% more out of the federal government than in pays in. And there are plenty more like that. Here's a few: OK: $1.48; AR: $1.47; AL: $1.71; SC: $1.38; NC: $1.10; KY: $1.45; WV: 1.83; VA: $1.66. (See http://www.taxfoundation.org/research/show/22685.h... for other years)
So who is financing all this? What states pay more in taxes than they receive in federal expenditures? California: $0.79 per dollar; New York: $0.79 per dollar; Michigan: $0.85 per dollar; Illinois: $0.73 per dollar; Massachusetts: $0.77 per dollar; New Jersey: $0.55 per dollar; MN: $.69; WI: $.82; CT: $.66. Texas finances a bit too they get back $.94 per dollar paid.
For California, the tax burden was $7012 per capita. With 36 million people, that's 252 billion in taxes paid. Applying the .79 return rate, we see California paid almost $53 billion in "welfare" to other states in that one year.
These figures are from 2004. If you noticed a trend that blue states tend to be losers in this deal, and red states tend to be winners (not always; Texas gets $0.94) then bravo - you have spotted the true trend. Its really quite eye-opening.