2min chapter

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425. Remembrance of Economic Crises Past

Freakonomics Radio

CHAPTER

Do You Think the Federal Government Should Use Its Power to Borrow to Help the States?

Unlike the federal government, states can't just keep borrowing and at a deficit. They have laws requiring at least the proposal of a balanced budget. And because they're not allowed to run budget deficits, they're going to have to start cutting spending,. Because democrats tend to be proponents of giving money to state and local governments, and republicans often are not. May i think the better thing is probably for states to stay the way they are? The federal government should use its power to borrow to help the states. It seems like the natural thing that we all share in those burdens. A benefit of being in a large country is that we have insurance. We take care of one another....

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