On 2011-09-08, at 12:07 PM, raghu wrote:

> On Thu, Sep 8, 2011 at 3:53 AM, Gassler Robert <[email protected]> wrote:
>> One possible answer to the first question: Many people don't want to help 
>> those different from themselves. In Europe and elsewhere, differences are 
>> often based on geography: Flemings live in the north of Belgium, Wallonians 
>> in the South, for example. In the US, all ethnic groups live everywhere, 
>> though admittedly in differing proportions. Thus the wealthier mostly white 
>> Americans are perturbed by transfers to poor mostly nonwhite Americans. That 
>> may overwhelm regional resentment.
>> 
> 
> 
> I seriously doubt a wealthy white hedge-fund manager in Connecticut
> feels some ethnic solidarity with your average white Alabaman or
> Mississippian.
> 
> I think the answer to why wealthy blue state residents do not resent
> transfer payments to red states is simply that people do not realize
> that it is going on.
> 
> If you ask California voters to pay a specific tax so payments can be
> sent to Alabama, you will see resentment similar to what you are
> seeing in Europe.
> 
> The biggest benefit to fiscal union is that it disguises these types
> of subsidies.


Sounds right to me, and suggests why European politicians and capitalists in 
the richer countries have had to to move incrementally and by stealth in 
pursuit of continental integration. 
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