
Originally Posted by
Furunculus
Because it isn't just what you spend your taxes on and how much, it is where you spend them in order to even out the imbalances that prevent one part of the economy from functioning within another.
Infrastructure - welsh road building
Social security - glasgow
Public jobs - north east
Procurement - harland and wharf
Failure to do so results in a divergent economy where the poorer parts struggle to live in a richer society, and poverty is compounded. Visit Greece today.
America knows this, it operates a transfer union, it succeeds. Can the same be said for the eurozone?
The reverse side of the fiscal union coin, a transfer union, and you can't dump public money on someone else unless theirnis a social compact permitting this.
This requires a political union, or put another way; a sense of shared familial sentiment.
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