Thursday, February 10, 2011

A Senator's Value

I plot the value of a Senator, taken from the relative return of one dollar in federal taxes with the number of districts.   The senators from California occupy the Gold Mine, the point to the far right.  Having more senators helps.
The trade off in the Senate is one size program fits all from Washignton DC or State Grants in aid.  The former shortens the chain, decreases variabiity and lowers economics growth.  The later simply transfers wealth from the under represented to the over represented.    

So, all the grant-in-aid we have been having for ten years,and expanding, increase risk of default in the contributing state, multiplier less than one.  Adjustments take longer,  lower transction rates go with large transaction sizes. 

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