Wednesday, February 9, 2011

A little hint on the 50 Hoovers

Of the federal grants-in-aid to the states from 1990 to 2000, the major states, now bankrupt, actually lost money.  It was really a grant from them to other states.  ProGrowthLiberal is looking at 2.5% of GDP transferred from the winner states to the loser states during that period.  Generally the bankrupt states, CA,NJ,IL,NY, lose 15% of that, so they have lost collectively about  $60 billion from this program.  That number is close to the shortfall they now suffer.

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