Monday, April 30, 2012

How Rich States In US Transfer Money To Poorer States

This article contrasts the transfer of money from rich US states to poorer US States with efforts to do something similar in the eurozone.  It is not obvious to most citizens that this is done in the US.  That is one of the reasons, perhaps, why most of those in poorer states oppose government programs that redistribute wealth.   They also tend to vote for the GOP because of its opposition against a big federal government.  The eurozone has more difficulty dealing with the politics of income transfers for a variety of reasons.  One of the reasons, may be because it is more transparent in the eurozone.

For those who are interested, there are links to interactive graphs that breaks federal government transfers beneficiaries down to the county level.  There is also a graph that shows which states are net receivers and net givers of federal funds.

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