Paul Krugman has an interesting post at his blog today, on the difference of how we see federal aid to states and how Europe sees aid to individual European countries:
So it comes as something of a shock to look at Eurostat data
(pdf) on real GDP per capita (or productivity, which look similar).
Sure, Greece and Portugal are relatively poor, with GDP per capita of 82
and 77 percent, respectively, of the EU average; this means roughly 76
and 71 percent of the eurozone average, since the euro countries are a
bit richer than the EU as a whole. Meanwhile, Germany is at 120 percent
of the EU, or 112 percent of the EZ.
But it’s no different, really, than the US situation
(look under per capita GDP). Alabama is at 74 percent of the US
average, Mississippi at 67, with New England and the Middle Atlantic
states at 118 and 116.
In other words, as far as underlying economic inequalities are concerned, the EZ is no worse than the US.
The
difference, mainly, is that we think of ourselves as a nation, and
blithely accept fiscal measures that routinely transfer large sums to
the poorer states without even thinking of it as a regional issue — in
fact, the states that are effectively on the dole tend to vote
Republican and imagine themselves deeply self-reliant.
The thing
is, we didn’t always think of ourselves as a nation, either. Before the
Civil War, people talked about “these United States”; it was only after
the war that “these” became “the.”.
Being a Democrat, I was especially entertained by, " in
fact, the states that are effectively on the dole tend to vote
Republican and imagine themselves deeply self-reliant." I wonder if it's true.
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