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State and local government do need to raise money. Unless you want all local agencies to spend no more and no less than what the federal government decides to g
by handmodel 4y ago
State and local government do need to raise money. Unless you want all local agencies to spend no more and no less than what the federal government decides to give them. They cannot issue currency.
- neilwilson 4y agoState and local government can issue currency if they want to. And yes, maintaining the peg and free movement means that the higher level government does decide what to give them. That's what giving up sovereignty at a lower level implies. Even at local level, they need manpower, not land. So you end up relying on fungibility.
- scarface74 4y agoWould you trust currency issued by the sand government that can’t manage its own pensions?
- lovich 4y agoState and local governments explicitly cannot issue their own currency. This was included in the constitution in article 1 section 10[1] after the US states dealt with all the issues of multiple state issues currencies that occurred during the short lived time under the Articles of Confederation. [1]https://constitution.congress.gov/browse/essay/artI-S10-C1-2-2-1/ALDE_00001099/ https://constitution.congress.gov/browse/essay/artI-S10-C1-2...
- handmodel 4y agoThey cannot. I'm also not exactly sure what you mean by your manpower statement. Say a town wants to build traffic lights and a new intersection. Surely it's easier to collect money and pay an outside firm (which may or may not have local employees) then engineer the road/lights locally? Same with police. They use tons of tools and systems to both do their job and internally. Obviously raising money is going to be more efficient than each town designing its record management tools from scratch.