In The Union of European States, Ahead Of The United States, Spend No Tax

In The Union of European States, Ahead Of The United States, Spend No Tax

Look to the past, read the story helps to imagine the future. It serves today to put in a different perspective what is happening in Europe, by forcing it wants Germany to pool fiscal policies and budgets of the Member of the Union as a step towards a more federal Europe.

The example and there is the United States of America. As we do the euro, the dollar, the single currency, there was from the very beginning (and actually even-like central banks). This may lead to think that the pooling of the debt is a precondition for listing common currency. It does not. In time it was not in the United States since many different states have survived together, united, with a single currency from the start A single currency can live well with different States even without a debt in common. Indeed, I will argue, if you put your debt (and more) in common too soon dies.

It would be a mistake to think that the American federal state born in the first 800 through the (temporary) pooling of debts was dominant. Anything. Up to 1910, the data tell us, the federal debt was not dominant and, what is more important here, it was not the state budget, meaning revenue and expenditure.

Up to 1910, almost 150 years after the birth of the Union, the US federal revenues were in fact minority and, above all, accounted for less than 3% of GDP. The tax revenues of states and cities were more.

Only in 1911 with the first reform of the taxation of something starts to move. But it is only after two world wars and the last term in Franklin Delano Roosevelt that can be said with certainty that the presence of the state in the US has become significant and the federal government has become the dominant actor and the public budget It is finally centralized.

Why it was not centralized before? Because before you build the United States of America it was to build … the Union of American States. And to do that you had to combine a lot of things different, individual states, rightly jealous of their cultures of origin, their history, their habits and, therefore, also of their local governments that such aspects financed and supported. Centralize the budget in 800 would be tantamount to expropriation of reference cultures of citizens, and therefore to confirm the death of the policy. It was not done.

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