Posted by WARREN MOSLER on December 24th, 2009
Still haven’t seen any discussion of a per capita revenue distribution to all the States?
$500 per capita would give California maybe $19 billion and be ‘fair’ to all the States.
It would also support aggregate demand (spending power) output and employment, which presumably is a national priority?
Feel free to send this suggestion to your representatives!
By Michael B. Marois and William Selway
Dec. 24 (Bloomberg) — CaliforniaGovernor Arnold Schwarzenegger wants President Barack Obama to help ease large- scale cuts to the most populous U.S. state’s already diminished social programs amid a $21 billion anticipated deficit.
Schwarzenegger, a Republican, plans to ask for relief totaling as much as $8 billion, according to a California official who asked not to be identified because details haven’t been resolved. Instead of seeking one-time stimulus money or a bailout, the state wants the U.S. to reduce mandates and waive rules stipulating minimum expenditures on programs such as indigent health care, the official said.
California has been among the states most affected by the economic recession. It has the lowest credit rating and recorded the nation’s second-highest rate of home foreclosures, trailing only Nevada. Unemployment peaked at 12.5 percent in October amid the loss of 687,700 jobs from the year before, when the jobless figure was 8 percent. Wealth declined as the stock marketlost 40 percent of its value in 2008.