Smaller rural states cannot scale up to match national programs

No, 'blue states' do not bail out 'red states'

Thus the appearance of Blue vs Red.

The correct answer is that the House needs to bail out state capitals so they have the liquidity to compensate for lack of scale. The correct answer is written in the Constitution.

Most of the difficult problems do not map onto the two party linear scale. The great tragedy is when pundits believe tings are explanable in a linear scale, for example Krugman and Delong, neither of whom can excape the scale problem and refuse to look closely. So their entire economic theory rests on assuming the incorrect view them blaming the other party for having a Constitution. This post makes the same mistake.