(Bloomberg Opinion) -- Crises tend to widen fault lines that already exist. The Covid-19 pandemic has been no exception. Before the virus hit, the unbalanced nature of recent economic growth was already straining federal structures around the world, from the U.S. to India to Europe. The current crisis threatens to open new disagreements and deepen old ones — and transform some political entities beyond recognition.The real problem is that the Swamp is dysfunctional and unstable. If this author gets a clue the the options moving forward increase. We also have a huge mental issue looming, Nixon Shock Syndrome, and it afflicts most of he Swampers back there. We may end up doing the overnight Fed Contract, and i will not be petty. But flat earthers are fouling things up big time.
This isn’t just a question of how central governments should distribute revenues and aid, although in most cases that’s the matter at hand. When Senate Majority Leader Mitch McConnell suggested that he’d rather see “blue states” go bankrupt than have the federal government bail them out, he wasn’t making only a crass political calculation. He legitimately didn’t want states to receive aid if he felt they had overspent on, say, pensions.
He raises a fair point: How, in this crisis, should the federal government fairly deal with states that hold completely different visions of what government is and what it should do? Why should states that are so allergic to government that they would reject even Medicare expansion funds agree to finance states that have readily taken on debt to pay pensions?
Sunday, May 3, 2020
Look at the revenue sharing agreement of the 70s
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