On 2011-09-07, at 11:44 PM, SA wrote:
> On 9/7/2011 11:08 PM, Marv Gandall wrote:
>
>> An interesting chart...
>>
>> http://www.economist.com/blogs/dailychart/2011/08/americas-fiscal-union?page=2
>>
>> I've got several questions about the United States, obviously prompted by the eurozone debate over fiscal union:
Thanks for your response which was mostly helpful, although I'm not persuaded by the following:
>> MG: Why, unlike in Europe, are voters in wealthier US states like Minnesota, New Jersey, Illinois, Connecticut and New York relatively unperturbed by fiscal transfers to poorer states like Alabama, Mississippi, Montana, and West Virginia? Has this always been the case, including during the American constitutional debates of 1787-1793?
>
> SA: The answer is pretty obvious, no? Imagined communities, etc? Why do the folks in Munich object to paying for the Greeks' unemployment benefits, but not so much to paying for the Dusseldorfians' benefits? Why would the Nicois never accept paying benefits to Italians in Turin (right across the border), but it's okay to pay them to Bretons (much further away)? Same thing. By the way, in 1787, federal redistribution was tiny, mostly to do with the post office.
MG: This suggests a fiscal union is impossible - or rather, impossible of receiving popular assent - because of linguistic and other national differences within Europe, but my impression is many in Germany and France who presently oppose a fiscal union with the Greeks, Italians, or Spanish would readily support one with the Swedes, Dutch, and British. There are economic considerations here which weigh as, or even more, heavily than national prejudices.
Also:
> SA: If you're looking for contradictions, why does the Chamber of Commerce not support a big stimulus package, since that would increase profits?
MG: Actually, the C of C strongly supported Obama's stimulus package in 2009:
Chamber of Commerce Urges Large Stimulus Package By Peter Whoriskey Washington Post Staff Writer Wednesday, January 7, 2009
http://www.washingtonpost.com/wp-dyn/content/article/2009/01/07/AR2009010702279.html
Economic Stimulus That Works By Tom Donohue President and CEO, U.S. Chamber of Commerce Free Enterprise Magazine: News and Views from the US Chamber of Commerce February 01, 2009
http://www.uschambermagazine.com/article/economic-stimulus-that-works
And within the last 24 hours, a Chamber spokesperson called for additional stimulus:
Democrats Eye Infrastructure Spending for Stimulus By Rich Edson Fox Business News September 07, 2011
President Barack Obama and congressional Democrats have long identified America’s antiquated bridges, tunnels and transit centers as ideal for federal spending proposals to create jobs.
An advocate of increased federal transit spending said the economy largely realizes the bulk of the employment benefits from infrastructure construction projects over years and decades.
“We're not talking about immediate job creation, we're talking about a year, two years, three years down the road,” said Janet Kavinoky, the executive director for transportation and infrastructure at the U.S. Chamber of Commerce. “(An updated infrastructure is important for) the economy and competitiveness in the long run, but we’ve got to manage expectations in the short run.”
[…]