[Marxism] America's fiscal union

Ganesh Trichur gtrichur11 at hotmail.com
Wed Sep 7 23:42:03 MDT 2011


Tentative response: Are not states like VA (and perhaps Montana as well) host to the US defense industry, as well as main sites of PMFs (like Blackwater) and PSCs? Others like the Southern states of Al and MI may have two things going for them -- they are sites of non-unionized labor; and I speculate that they may still harbor a protected Southern ruling class. 
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http://www.economist.com/blogs/dailychart/2011/08/americas-fiscal-union?page=2

1. Why, unlike in Europe, are voters in wealthier US states like Minnesota, New Jersey, Illinois, Connecticut and New York relatively unperturbed by fiscal transfers to poorer states like Alabama, Mississippi, Montana, and West Virginia? Has this always been the case, including during the American constitutional debates of 1787-1793? 
2. Does the fiscal union impose spending discipline on the poorer states?  Do federal transfers come with strings attached, i.e. federal control over state spending?
3. Do the corporations based in the richer states which support these transfers have any interests other than maintaining these markets for their goods and services?
 		 	   		  


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