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You can't really compare the redistribution in the States with the Euro area. If some state like Kansas has problems, automatically, the federal budget cover t
by RobertoG 11y ago
You can't really compare the redistribution in the States with the Euro area.
If some state like Kansas has problems, automatically, the federal budget cover the increment in social spending and that keep the aggregate demand in that state from going too low.
If some state like Greece has problems, automatically, Brussels make them to spend less in social programs in order to control its spending. The aggregate demand fall and the problems increase.
The Euro area is "designed" to be procyclical. And that is crazy.