Restructuring government

Get it out of its liquidity trap?

Cram the debt downhill in exchange for loss of future revenue. Split the debt, and with each chunk of debt a smaller central future government results. You don't need to be an expert in Spontaneous Order to get the problem, between the states and central, there is not much to hold debt.

Regionalize. Break up the big states, go with the NY, Texas, Southeast, California, Cascadia, Midwest. Just equalize the senators, inflate the count and redistrict under existing constitutional provision. In exchange for the Senators, the mini-states reach a tax deal in groups, and create a debt holding entity with a tax stream by prior agreement.

So for California, we get the California system, and six more senators, by boundary and agreement. Then split the tax streams to let the regional debt holder get the middle income bracket. Come to a prior agreement on regional health management.

You end up with a central government at 1/3 debt total, bondholders taking their third, but a central government with the predicted 14.5% share.

Do this, boom times, that is some Fiscal Stimulus, none of this Pansy Wansy Keynesian stuff.