We’ve often discussed how this would actually be something of a silver bullet to solving Europe‘s PIGS problem.
Below you’ll see the geography of net federal transfer payments in the U.S. by state.
The more pink the state, the more it takes out of the federal pot than it puts in…(or, if you prefer, the more freeloading off Uncle Sam is occurring).
This is basically analogous to what’s happening in Europe… except that Greece and other peripheral states don’t have a mechanism for getting transfers, so they’re on the verge of going bust.
And here’s the same map showing the same stats according to household income:
Looking at you, West Virginia…
- Map Shows Which States Are The ‘Greeces’ Of America (businessinsider.com)
- Greece Asks Troika For Moon; Time Means Money (isthereanyfutureforgreece.wordpress.com)
- Schaeuble urges Greece to apply program, not ask for concessions (ekathimerini.com)
- America is Greece… On Steroids (pakalertpress.com)
- Greece faces more woes: Finance minister resigns (usatoday.com)