Fiscal Federalism's Failure

I saw this site for making online tvshows it might be better than google+ for getting what you want

If you want fiscal federalism, you have to remove the state ability to coercively enact what are effectively additional taxes or restrictions, and limit them to spending what the federal government gives them.

Otherwise competition obliges states to engage in corporatism. If you permit the enforcement of monopolistic collusion, then collusion is always the attractor.

Unfortunately, this is fiscally equivalent to having state power arise from the federal rather than the state governments - where states exercise only what the federal government deigns to grant. In short, exactly the reverse of what philosophically underpins the US federal system, where DC is a compact between the people and the states. At best the federal government bribes states into line but this already enrages originalists and is hilariously inefficient.

Prof Kling,

I love the show idea. I check out bloggingheads.tv here and there. But the discussion there is rarely rigorous. You should do this more regularly. I subscribed to your channel!