The US states are massively in debt, and public-sector layoffs are causing unemployment to stay high, even while the private sector recovers.
The Federal Reserve can create dollars from nothing, and at the moment inflation is apparently a minor concern compared to deflation.
What would happen if the Federal Reserve assumed much or all of the debt of the states? They could pay off the debts ex nihilo
at a speed of their choosing, while allowing the states to create or save jobs. They could also simply grant money to those states that have relatively little debt. Does anything like this happen, and should it? [Not an economist]
posted by East Manitoba Regional Junior Kabaddi Champion '94
on Sep 14, 2010 -
With all the bickering over taxes in the election campaign, I'm trying to get a broader picture of US income tax history, theories behind past policies, and analysis of how they worked (in idiot friendly language). [more inside]
posted by p3t3
on Oct 17, 2008 -
(Possibly Advanced) Economics Filter:
How does new value created by industry and economy become money? [more inside]
posted by SlyBevel
on Dec 28, 2007 -
I was looking at a spoof map showing the 'United States of Canada' and 'Jesusland'. In it, the 'blue' states were now part of Canada, and the 'red' states were what's left of the US. With the increasing divide between the two sides, what would happen if those 'blue' states seceded somehow. Don't they represent most of the economic prosperity in this country? And what does that fact say about the this country?
(I know this is not possible, but it is interesting to look at the relationship between economics and political leaning.)
posted by eas98
on Nov 5, 2004 -
Economics question. Why is it problematic for a country like China to peg its currency to the dollar?
posted by ph00dz
on May 5, 2004 -
when Prohibition ended in the USA, did crime (both organised crime and general crime) increase or decrease? Did levels of alcholism increase? Did alcohol become cheaper? Are there lessons to be learned about the potential effects of legalising drugs? [MI] [more inside]
posted by Pericles
on Feb 22, 2004 -