(06-12-2010, 09:28 PM)Jester Wrote: Strange how, in your world, it is New York that has their fingers in the Federal cookie jar, when New York pays out far more than it receives, NYC especially.The method you are thinking of is flawed. The amount of spending on large states like NY is much higher than for small states like North Dakota, however you wish to measure it per capita, or per revenue dollar received. Of course, areas with higher density are going to share a resource more efficiently. Also, I see very little correlation between federal spending (gross, or per capita) and the relief of "rural isolation and poverty". The money is not having the stimulating effect you suggest.
The major recipients of Federal money are the poor, sparsely inhabited, rural states. The major contributors are the small, wealthy, urban states. If everything was "local," and everyone kept their fingers out of the "cookie jar," the result would be a sharp increase in rural isolation and poverty, and an increased gap between the Mississippis and the Massachusettses.
Federal Distribution by State
So for example, a highway bridge over a major waterway may get a million uses per year by citizens in NY, while the same bridge in ND would get maybe 1000 uses per year. Both groups of citizens have an equal need for a bridge.
I don't perceive that "rural isolation and poverty" would be the result, merely that lower density states would grow infrastructure more slowly, as it would take more time to fund their needed infrastructure. Currently, yes, NY, CA, TX, and FL fund wasteful boondoggles like Alaska's infamous bridge to nowhere. This is quickly solved by removing the federal cookie jar altogether.