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Corporate Economics Question

The blue states will always have higher taxes and will always subsidize the red states. Unless you change the Senate.

Well then let's do that first, THEN look to lowering federal spending & taxes.

Why do you need to change the Senate? You just need the blue state senators to come out and say "we support lower federal taxes and more federalism!". And then vote for it.

The red state senators supposedly already support that.

Win-win.

Red state Senate votes tend to be worth more, so they get proportionally more spending. And someone has to pay for that. Ergo, blue states pay more.

I think red states should lead by example and refuse more than their share of federal dollars. After we've seen the resulting small govt paradise, we'll have to play catch up.
 
Why do you need to change the Senate? You just need the blue state senators to come out and say "we support lower federal taxes and more federalism!". And then vote for it.

The red state senators supposedly already support that.

Win-win.

Red state Senate votes tend to be worth more, so they get proportionally more spending. And someone has to pay for that. Ergo, blue states pay more.

I think red states should lead by example and refuse more than their share of federal dollars. After we've seen the resulting small govt paradise, we'll have to play catch up.

You are correct. Secondly, it's remarkable but 30% of the senators (blue states) represent 70% of the population!
 
Why do you need to change the Senate? You just need the blue state senators to come out and say "we support lower federal taxes and more federalism!". And then vote for it.

The red state senators supposedly already support that.

Win-win.

Red state Senate votes tend to be worth more, so they get proportionally more spending. And someone has to pay for that. Ergo, blue states pay more.

I think red states should lead by example and refuse more than their share of federal dollars. After we've seen the resulting small govt paradise, we'll have to play catch up.

As previously mentioned, when Blue State senators start to support lower federal taxes, less federal spending and more federalism I'm on board.

I'm willing to make that sort of sacrifice even though I live in a 0% income tax state. I'm very noble that way.
 
Why do you need to change the Senate? You just need the blue state senators to come out and say "we support lower federal taxes and more federalism!". And then vote for it.

The red state senators supposedly already support that.

Win-win.

Red state Senate votes tend to be worth more, so they get proportionally more spending. And someone has to pay for that. Ergo, blue states pay more.

I think red states should lead by example and refuse more than their share of federal dollars. After we've seen the resulting small govt paradise, we'll have to play catch up.

As previously mentioned, when Blue State senators start to support lower federal taxes, less federal spending and more federalism I'm on board.

Are you under the impression that red state senators support less federal spending???
 
As previously mentioned, when Blue State senators start to support lower federal taxes, less federal spending and more federalism I'm on board.

Are you under the impression that red state senators support less federal spending???

Some of the talk like they are. I think if the Democrats got on board they's lose their main excuse for not actually doing it.
 
Why do you need to change the Senate? You just need the blue state senators to come out and say "we support lower federal taxes and more federalism!". And then vote for it.

The red state senators supposedly already support that.

Win-win.

Red state Senate votes tend to be worth more, so they get proportionally more spending. And someone has to pay for that. Ergo, blue states pay more.

I think red states should lead by example and refuse more than their share of federal dollars. After we've seen the resulting small govt paradise, we'll have to play catch up.

As previously mentioned, when Blue State senators start to support lower federal taxes, less federal spending and more federalism I'm on board.

I'm willing to make that sort of sacrifice even though I live in a 0% income tax state. I'm very noble that way.

When your reps start leading by example, there may be some hope for that. Guess you have some letter writing to do.
 
As previously mentioned, when Blue State senators start to support lower federal taxes, less federal spending and more federalism I'm on board.

I'm willing to make that sort of sacrifice even though I live in a 0% income tax state. I'm very noble that way.

When your reps start leading by example, there may be some hope for that. Guess you have some letter writing to do.

I thought you said my reps are doing a great job of bringing federal money from blue states into my state.

Why should they change?
 
As previously mentioned, when Blue State senators start to support lower federal taxes, less federal spending and more federalism I'm on board.

I'm willing to make that sort of sacrifice even though I live in a 0% income tax state. I'm very noble that way.

When your reps start leading by example, there may be some hope for that. Guess you have some letter writing to do.

I thought you said my reps are doing a great job of bringing federal money from blue states into my state.

Why should they change?

Unfortunately, Texas is one of the few (perhaps the only) red state that pays more in Federal taxes than it receives in Federal benefits.
 
As previously mentioned, when Blue State senators start to support lower federal taxes, less federal spending and more federalism I'm on board.

I'm willing to make that sort of sacrifice even though I live in a 0% income tax state. I'm very noble that way.

When your reps start leading by example, there may be some hope for that. Guess you have some letter writing to do.

I thought you said my reps are doing a great job of bringing federal money from blue states into my state.

Why should they change?

To show blue states the error of their ways.
 
As previously mentioned, when Blue State senators start to support lower federal taxes, less federal spending and more federalism I'm on board.

Are you under the impression that red state senators support less federal spending???

Some of the talk like they are. I think if the Democrats got on board they's lose their main excuse for not actually doing it.

Talk is cheap. The dems implemented paygo. Bush's first act as president was to eliminate paygo. Trump and the republican congress haven't brought it back. Bottom line: when republicans are in office, deficit goes up. Dems in office, deficit goes down (Clinton). Obama did oversee a deficit increase, but it was to get us out of the recession.
 
Some of the talk like they are. I think if the Democrats got on board they's lose their main excuse for not actually doing it.

Talk is cheap. The dems implemented paygo. Bush's first act as president was to eliminate paygo. Trump and the republican congress haven't brought it back. Bottom line: when republicans are in office, deficit goes up. Dems in office, deficit goes down (Clinton). Obama did oversee a deficit increase, but it was to get us out of the recession.

Clinton's low deficits, surpluses and large trade deficits were enabled by the private sector going into deficit. If not for the Internet and y2k related credit booms, govt deficits would've been higher. It ended with recession.
 
It constantly amazes me that people believe that state governments are more responsive and fiscally responsible than the federal government. State governments are the least responsive. Can you name off of the top of your head the state representative and if you don't live in Nebraska, the state senator who represent you in your state legislature.

Not to belabor the obvious, there are only two levels of government absolutely needed, the local government and the federal government. The local government, usually cities or towns and townships or counties to service areas not in a city or town, to deliver schools, roads, jurisprudence, trash collection, building licensing and inspection, etc. The federal government to deliver defense, foreign relations, highways, uniform criminal and civil laws, the enforcement of the laws, to create money and banking and to raise tax revenue through the income tax.

The state governments were an obsolete concept driven by the realities of the 18th century, long travel times and communication with month long lags. Today they are clung to out of a sense of tradition and promoted by commercial interests because state government is the easiest to corrupt.

Go to your MBA professor and tell him that you are reorganizing your business to add even more levels of middle management to your organization to improve responsiveness and see what he says. He will tell you that you are crazy, that middle management reduces responsiveness and adds to the time to make decisions and to implement decisions once they are made. And this what state governments are, middle management.
 
It constantly amazes me that people believe that state governments are more responsive and fiscally responsible than the federal government. State governments are the least responsive. Can you name off of the top of your head the state representative and if you don't live in Nebraska, the state senator who represent you in your state legislature.

Not to belabor the obvious, there are only two levels of government absolutely needed, the local government and the federal government. The local government, usually cities or towns and townships or counties to service areas not in a city or town, to deliver schools, roads, jurisprudence, trash collection, building licensing and inspection, etc. The federal government to deliver defense, foreign relations, highways, uniform criminal and civil laws, the enforcement of the laws, to create money and banking and to raise tax revenue through the income tax.

The state governments were an obsolete concept driven by the realities of the 18th century, long travel times and communication with month long lags. Today they are clung to out of a sense of tradition and promoted by commercial interests because state government is the easiest to corrupt.

Go to your MBA professor and tell him that you are reorganizing your business to add even more levels of middle management to your organization to improve responsiveness and see what he says. He will tell you that you are crazy, that middle management reduces responsiveness and adds to the time to make decisions and to implement decisions once they are made. And this what state governments are, middle management.

To me, it's just an issue of priorities. If federal spending were cut 5%, the US military has one less attack sub. If local taxes in my state are cut 5%, school programs are eliminated, less police are in the neighborhood, less fire trucks are available. State government is incredibly wasteful. But their spending is simply more impactful on me and my family.
 
Some of the talk like they are. I think if the Democrats got on board they's lose their main excuse for not actually doing it.

Talk is cheap. The dems implemented paygo. Bush's first act as president was to eliminate paygo. Trump and the republican congress haven't brought it back. Bottom line: when republicans are in office, deficit goes up. Dems in office, deficit goes down (Clinton). Obama did oversee a deficit increase, but it was to get us out of the recession.

Obama had constantly declining budget deficits until FY2016. I remind you that FY2009 was Bush's last budget deficit of 1.4 trillion dollars, not Obama's first. The Obama stimulus was included in FY2010 which was a deficit of 1.2 trillion dollars. FY2009 was possibly the only budget enacted exactly as the administration (Bush II) proposed it in March of 2008. The budget was approved as proposed because they were focused on FY2010 to pump stimulus into the economy. The stimulus in FY2009 was only 300 billion dollars or so. We are now in FY2018 but without any budget proposed much less passed, except for Trump's aspirational one of 15 pages or so.
 
It constantly amazes me that people believe that state governments are more responsive and fiscally responsible than the federal government. State governments are the least responsive. Can you name off of the top of your head the state representative and if you don't live in Nebraska, the state senator who represent you in your state legislature.

Not to belabor the obvious, there are only two levels of government absolutely needed, the local government and the federal government. The local government, usually cities or towns and townships or counties to service areas not in a city or town, to deliver schools, roads, jurisprudence, trash collection, building licensing and inspection, etc. The federal government to deliver defense, foreign relations, highways, uniform criminal and civil laws, the enforcement of the laws, to create money and banking and to raise tax revenue through the income tax.

The state governments were an obsolete concept driven by the realities of the 18th century, long travel times and communication with month long lags. Today they are clung to out of a sense of tradition and promoted by commercial interests because state government is the easiest to corrupt.

Go to your MBA professor and tell him that you are reorganizing your business to add even more levels of middle management to your organization to improve responsiveness and see what he says. He will tell you that you are crazy, that middle management reduces responsiveness and adds to the time to make decisions and to implement decisions once they are made. And this what state governments are, middle management.

To me, it's just an issue of priorities. If federal spending were cut 5%, the US military has one less attack sub. If local taxes in my state are cut 5%, school programs are eliminated, less police are in the neighborhood, less fire trucks are available. State government is incredibly wasteful. But their spending is simply more impactful on me and my family.

Possibly because the state governments have cooped local government spending. That is what has happened in Georgia.
 
Some of the talk like they are. I think if the Democrats got on board they's lose their main excuse for not actually doing it.

Talk is cheap. The dems implemented paygo. Bush's first act as president was to eliminate paygo. Trump and the republican congress haven't brought it back. Bottom line: when republicans are in office, deficit goes up. Dems in office, deficit goes down (Clinton). Obama did oversee a deficit increase, but it was to get us out of the recession.

Obama had constantly declining budget deficits until FY2016. I remind you that FY2009 was Bush's last budget deficit of 1.4 trillion dollars, not Obama's first. The Obama stimulus was included in FY2010 which was a deficit of 1.2 trillion dollars. FY2009 was possibly the only budget enacted exactly as the administration (Bush II) proposed it in March of 2008. The budget was approved as proposed because they were focused on FY2010 to pump stimulus into the economy. The stimulus in FY2009 was only 300 billion dollars or so. We are now in FY2018 but without any budget proposed much less passed, except for Trump's aspirational one of 15 pages or so.

It's only fair to add that a good portion of Obama's deficits were paper deficits, as the QE money was never spent into the economy. It was more in the nature of an asset swap, and a contractionary one at that, as the profits accrued to the govt.

How many trillions were created at a stroke? I forget...
 
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