They have no theory of value added chain

Larry Summers Conversation on New Economic Thinking

Which is a theory of economies of scale.  Larry keeps going back to that issues, he calls it financial intermediation. They are learning the concept of optimal congestion. This is a self sampled system, there is no Godot marking mysterious marks along the path.

Thus, the whole idea of revenue sharing is hard for Godotists to accept. They Godotist has no concept that government in the USA is a value added chain that is heavily skewed, and that causes cycles if not dealt with properly. Dealing with it means a tuned revenue sharing problem.

If the economists have no clue then certainly the small state governors will be in the wilderness on this problem. The instability results in the rotation of parties into and out of the Swamp, mostly driven by region.  Any of the Godotists policies in the Swamp will dis-favor one of the other regions. The pay off is to invest in a new regime rather than suffer the deficit.  This always happens to small states, and the governors have no clue. Eventually they end up stuck in a liquidity trap while Godists attempt to balance the Swamp. We get sudden stops.

Take the union bailout issue.  This will take five years, likely, to be worked out in the swamp.  But it barely concerns he small states, so both parties to the dispute need to keep revenue sharing going on until the issue is decided. If they do not, then we reach a point where ear marks are needed to keep the small states liquid, and we get a sudden, and inefficient solution riddled with senate ear marks. This happened in the Obamacare case and resulted in lost elections for Dems.