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|User Info||States Growing Hair On Their Pair; entered at 2009-11-03 08:59:56|
To me there are only 2 ways for the next stimiulus to go.|
Stimulus is a tax credit:
If the taxpayers recieved roughly $500 in a tax credit we would likely put most if not all of it to paying debt.
Stimulus goes to the states:
The states sink the money into balancing the budget which provides a very temporary fix.
With the states badly in need of help I would wager they get the stimulus directly. This curtails anti-administration sentiment just long enough for the Democrats to maintain control. I don't think the states growing a pair is an issue because they will get paid not to take action. Any attourney general who sticks to his guns would likely find himself out of office.
I believe most of the stimulus would go to California, Florida, Illinois, New York, and New Jersey. Those are 5 of the 10 states that make 45% of our GDP which means they get priority. California, Florida, and Illinois are the top 3 in terms of GDP and New York/New Jersey are major financial centers. Not to mention New York is an easy place to sway opinion towards the administration. Keep in mind the burden of just 2 of those states going down creates a problem the other 40 can't hope to fix.