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Doesn't the US do the same with states instead of countries?
by pier25 3y ago
Doesn't the US do the same with states instead of countries?
- alenrozac 3y agoNot really. US is in a better position for a federal-wide monetary union. Labor mobility is a key component, and it is easier when you don't have different languages and cultures.
- deleted 3y ago[deleted]
- mcv 3y agoTo what extent does each state run its own economy? The EU does not have centralised taxes or a centralised economic policy, but it does have a single currency. It's possible a single currency also requires more centralised financial/economic policies.
- galangalalgol 3y agoState economies do differ dramatically though, and monetary policy can indeed affect them in opposite ways at least for a while. And state revenues are almost entirely collected by the state aren't they? There are funds for interstates and railroads, and schools, but often schools are primarily funded at the city level by property taxes.
- laratied 3y agoThere is really just the US economy. We would not say that Pennsylvania is in recession but New York is not. The major difference between states is tax rates. Labor, transacting, anything else economically is practically transparent and frictionless.
- ChuckNorris89 3y ago>The major difference between states is tax rates. Also tax spending. For example there's no central EU funded military but each member budgets it differently, just like how there's no New York military and Pennsylvania military.
- yieldcrv 3y agoTop level EU has no capability of being a fiscal union, only a partial monetary union. This has limitations and reduces how analogous it can be to the US' and its member states.