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Agree this is a benefit, but in Louisiana's case this benefit is only 0.5% of their GDP (10 billion aid / 205 billion GDP). In a red state, where business inter
by bendbro 7y ago
Agree this is a benefit, but in Louisiana's case this benefit is only 0.5% of their GDP (10 billion aid / 205 billion GDP). In a red state, where business interests more heavily control political power, I don't think federal tax benefits will influence a Brexit-tier decision too much.
To put this in blunt terms: there are a ton of impoverished African Americans in these states that receive a large chunk of that federal aid. The segments of Louisiana that don't receive that aid are tax-productive and will not vote against a Brexit-like decision, even if it means that federal aid stops flowing
- wutbrodo 7y ago> this benefit is only 0.5% of their GDP (10 billion aid / 205 billion GDP) This is 5%, not 0.5%. On top of that, your numbers aren't correct: they receive around $20bn net, and their GDP is around $250bn, which means that which means that direct net federal spending is about 8% of their GDP (and gross federal spending is a whopping 20%). These are pretty huge numbers, and they affect the entire state economy, directly affecting the profits of the business owners that you claim wouldn't care.
- bendbro 7y agoDoh, what a stupid error. 8% seems significantly more meaningful, but I would still be curious exactly how that positive 20b is spent.