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US states don't run budget deficits, though. They all have balanced budget rules (there are several variations), and they pretty much follow them.

Puerto Rico (not technically a state) is an example of what can happen if the rules are avoided. Similar to the EU PIGS.

by asdf on Tue Dec 11th, 2018 at 02:44:57 AM EST
[ Parent ]
But we haven't worked out the vital necessity of a federal income tax yet, and massive transfers from richer states towards the poorer ones.

Which is why the USA is a relatively successful federal state, and...

It is rightly acknowledged that people of faith have no monopoly of virtue - Queen Elizabeth II

by eurogreen on Tue Dec 11th, 2018 at 10:51:54 AM EST
[ Parent ]
Now, you're on to something: transfer payments. How transfer payments (not 'authoritarism') curry political loyalty.

Consider, if you will litigation today between states and federal government about whether or not US gov may withhold payment from "sanctuary cities," for example of coercion. And no, this tactic was not invented 40 years ago.

Under what conditions has EU gov similarly rewarded or impoverished a member state?

Diversity is the key to economic and political evolution.

by Cat on Tue Dec 11th, 2018 at 02:51:21 PM EST
[ Parent ]
The EU is proposing to withdraw structural funds from member states that don't respect the EU's values (a jab at Poland and Hungary) or the fiscal rules.

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman
by Migeru (migeru at eurotrib dot com) on Tue Dec 11th, 2018 at 06:10:01 PM EST
[ Parent ]
Poland and Hungary being among the largest net recipients of EU funds, and yet the most likely to breach the democratic norms they are supposed to uphold per the Treaties.

Index of Frank's Diaries
by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Tue Dec 11th, 2018 at 06:43:45 PM EST
[ Parent ]
Mississippi and Alabama are large net recipients of federal money, and have a history of breaching democratic norms.

A good thing is that by building huge military installations in those states, they become dependent on the federal government, which then has more leverage over them on the democratic norms front. A bad thing is that those states send just as many (or more, proportionally) representatives to Congress as do the richer states, which puts downwards pressure on the democratic norms.

by asdf on Wed Dec 12th, 2018 at 12:06:09 AM EST
[ Parent ]
Has this 'threat' come to pass? Need it?
Supreme court justices who would have been forced to retire will be allowed to stay on.
under the radar

For this threat to become a reality, however, all 27 other EU member states would have to support that next step. Poland has declared it will not support this, presumably to pre-empt the possibility of a similar action being taken against Poland.
Hungary and Poland: Rogue states threatening the EU?

Diversity is the key to economic and political evolution.
by Cat on Tue Dec 11th, 2018 at 07:17:52 PM EST
[ Parent ]
US States don't run budget deficits because they are sub-sovereign entities. The federal government runs a budget deficit for everyone. That's what's missing in the eurozone.

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman
by Migeru (migeru at eurotrib dot com) on Tue Dec 11th, 2018 at 11:25:28 AM EST
[ Parent ]
Golden Bear chits

Diversity is the key to economic and political evolution.
by Cat on Tue Dec 11th, 2018 at 02:51:52 PM EST
[ Parent ]

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