One more reminder that blue states subsidize red states; telling blue states that the federal govt will abandon them does not seem like a wise long term strategy https://www.businessinsider.com/mcconnell-states-bankruptcy-coronavirus-federal-bailout-economy-instead-aid-2020-4
In normal times NY pays in about $12.8K per person to the federal govt and gets 80% of that back in federal spending.
McConnell’s KY pays in about $6.6K and gets a 190% return.
The logic of the feds abandoning the hardest hit states is not just unfair - it is economically nuts.
McConnell’s KY pays in about $6.6K and gets a 190% return.
The logic of the feds abandoning the hardest hit states is not just unfair - it is economically nuts.
Conservatives might think that they want to encourage a Tieboutesque logic where liberals support lowering federal taxes and more variation in state level taxes. But the reality is that states like McConnell's Kentucky need massive subsidies from states like California.