Abstract

This paper investigates the impact of business and labor organizations upon governmental redistribution to the poor, or the extent to which government expenditures and revenues redistribute income to poor households. A cross-sectional analysis of 48 American states circa 1960 supports the propositions that large business corporations negatively affect governmental redistribution and that labor unions positively affect governmental redistribution. The analysis also supports past findings relating socioeconomic development, poverty, and the interaction of Democratic party strengths and cohesion and interparty competition to governmental redistribution. Findings suggest that redistribution to the poor by American state governments is a class issue, partially determined by conflicting class forces.

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