At his blog, Paul Krugman muses about the differences between Florida and Spain:
[A] crude calculation:
- From IRS data, we find that Florida’s tax payments to Washington fell approximately $25 billion between 2007 and 2010, the bottom of the slump.
- From Labor Department data, we find that in 2010 special unemployment insurance programs — extended benefits paid for from DC — were about $3 billion in 2010.
- From SNAP (food stamp) data, we see that food benefits to Florida rose about $3 billion over the same period.
Aid on that scale is inconceivable in Europe as currently constituted. That’s a big problem.
Florida Versus Spain
This is why I, and anyone else with at least a basic understanding of the differences between our country and the European Union, say that we will not end up like Spain or Greece. Nor will Florida, or California. There is a federal fiscal and monetary system in America, and that makes our problems fundamentally different from those of Europe. Anyone who says American states will end up like EU members either understands even less about economics than I do, or is lying idiot.
And, to answer the obvious question, there's no reason to think such people can't be both.