Monday, November 7, 2011

Yglesias and the perpetual government insurance program

He talks about how there should be no winners and no losers in Europe, the PIGS should get subsidized consumption from Germany.

Here in the United States people don’t run around talking about how New Jersey runs a persistent trade surplus and Kentucky has a persistent deficit and it’s unfair for productive New Jersey to be subsidizing uncompetitive Kentucky Yglesias
But this statement of his is pure Yglesias fiction. The main topic of conversation in the Senate is precisely what he denies, The Senate, to function, has to balance the share of goodies from between the over-represented states and the under represented states. The whole Senate design from 200 years ago all about how to avoid the subsidies that Yglesias thinks are natural.

I guess my main point above all of every thing else, is how did Yglesias come up with the silly notion that there are no losers?

No comments: