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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: combjelly who wrote (372332)	2/28/2008 3:35:11 PM
From: TimF	Read Replies (1) \| Respond to of 1577111

All federal and state government spending in the US combined has more transfer payments any other category of spending. And even in the states alone transfers payments and what amounts to pork are still far from insignificant. It is the largest, Tim. A state might get rich by the factors you name, but it only stays there by developing and maintaining the infrastructure to support it. It only stays there with the non government parts as well. It isn't the most important, all the government initiatives have to get their resources from the private sector. And a large part of what state governments do isn't education or important infrastructure. Subtract out public safety as well and you still have a lot of spending. A certain amount of infrastructure spending is needed to keep the economy productive, and few people would have a problem with that. But the massive growth of government beyond those areas mentioned (and often inefficiencies in those areas) help keep further growth and wealth creation down. With states its probably more a matter of regulation than taxes. High taxes have a negative effect but even in places like CA and NY the majority of the tax burden for most people and corporations is from the federal government.