f you’re worried about where America is heading, look no further than Tennessee. Its lush mountains and verdant rolling countryside belie a mean-spirited public policy that only makes sense if you believe deeply in the anti-collectivist, anti-altruist philosophy of Ayn Rand. It’s what you get when you combine hatred for government with disgust for poor people.

Tennessee starves what little government it has, ranking dead last in per capita tax revenue. To fund its minimalist public sector, it makes sure that low-income residents pay as much as possible through heavily regressive sales taxes, which rank 10th highest among all states as a percent of total tax revenues. (For more detailed data see here.)

As you would expect, this translates into hard times for its public school systems, which rank 48th in school revenues per student and 45th in teacher salaries. The failure to invest in education also corresponds with poverty: the state has the 40th worst poverty rate (15%) and the 13th highest state percentage of poor children (26%).

Employment opportunities also are extremely poor for the poor. Only 25% have full-time jobs, 45% are employed part-time, and a whopping 30% have no jobs at all.

So what do you do with all those low-income folks who don’t have decent jobs? You put a good number of them in jail. In fact, only Louisiana, Georgia and New Mexico have higher jail incarceration rates.

From the perspective of Tennessee legislators, it’s all about providing the proper incentives to motivate the poor. For starters, you make sure that no one could possible live on welfare payments (TANF: Temporary Assistance to Needy Families). Although President Clinton’s welfare reform program curtailed how long a family can receive welfare (60 months) and dramatically increased the work requirements, Tennessee set the maximum family welfare payment at only $185 per month. (That’s how much a top hedge fund manager makes in under one second.) As a result, the Volunteer State ranks 49th in TANF, just above Mississippi ($170).

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