Tuesday, March 21, 2017

And the small states get no safety net

A small to medium state has maybe 25-50 billion yearly in transfers with the senators. But the variation in interest payments yearly might be 100 billion, if the economy hums a bit.

So, senators from small state are looking for endless elections cycles and battle trying to protect an important trade from interest payments.  They want a better basket size, smaller interest basket and larger small state basket.

What is the point otherwise? There is not the granularity to support them, the large states are stuck.  Business as usual will have them on the losing side in the swamp. The large have the 'too big to jostle' problem. We are up against a contradiction, likely the cause of our accumulating debt in the swamp.  Outsiders do not see this interplay, insiders here, know the state problem in the USA has been long, and continuing.

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