The Improbable Welfare State

Butterfield, Fox (1977-11-27). "The Improbable Welfare State". The New York Times. New York, NY: The New York Times Company. ISSN 0362-4331.

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Abstract: This article provides a detailed critique of U.S. economic policy in Micronesia, arguing that extensive federal spending transformed the islands into a “welfare state” heavily dependent on external support. It documents the scale of aid relative to local production and describes how government employment, welfare programs, and imported goods displaced traditional subsistence activities such as fishing and agriculture. The report highlights unintended consequences including unemployment, loss of traditional skills, social problems such as alcoholism and rising suicide rates, and distorted economic incentives. It frames these developments within broader Cold War strategic considerations and policy decisions that prioritized political control over sustainable economic development.