Two things should be kept in mind when discussing this topic,
The US, a large economically diverse nation with a single currency, only works because of fiscal transfers. Even the economists who engineered the Eurozone knew this, they just hoped a single currency would bring greater unity that would eventually lead to fiscal transfers.
The analysis that come to this conclusion all include social security and medicare. I think that's pretty misleading. A big group of my friends all attended public schools and universities in a red/purple midwestern state and after graduation all moved to the coasts. The coastal states get educated workers and leave behind retiring parents.
Technically, the US worked just fine, before there were fiscal transfers. What's really the case here is that a social safety net in the presence of migration can't be done on a state by state basis. It has to be national, which invariably results in net flows between states.
A lot of measures of interstate transfers mistakenly treat federal spending as a transfer. Really it's trade. A small percentage could be counted as a transfer.
Two things should be kept in mind when discussing this topic,
The US, a large economically diverse nation with a single currency, only works because of fiscal transfers. Even the economists who engineered the Eurozone knew this, they just hoped a single currency would bring greater unity that would eventually lead to fiscal transfers.
The analysis that come to this conclusion all include social security and medicare. I think that's pretty misleading. A big group of my friends all attended public schools and universities in a red/purple midwestern state and after graduation all moved to the coasts. The coastal states get educated workers and leave behind retiring parents.