States Still Walking the Fiscal Cliff
The Federal Government has a history which they continue today of both playing the role of supporter as well. As director of how state governments spend money and what services they provide for their residents, thats what. Happens in a Federalist system that states or provinces have the main role to provide what public services. They'll provide their residents as well as deciding what services they'll provide as it relates human services. Things like education, regulations in the economy, help for the needy to use as examples and where the Federal Government. Tends to come in whether Democrats or Republicans are in charge is to play the role of supporter and even overseer. To the extent it helps states that are struggling to finance basic services for their people with funding to do that. But the Feds are also there to make sure that basic services that people need from government are provided. But that they are also being provided fairly and people aren't discriminated based on race, ethnicity, gender to use as examples.
Because of the Great Recession but even before that states were having a hard time financing the public services. That they are suppose to provide which is why we've seen so many layoffs in the public sector and also why. Our unemployment rate which is now finally under 8% at 7.8% is as high as it is, had those public sector jobs. Not of been eliminated we are probably under 7% unemployment right now, which is why President Obama. And other Democrats have been proposing since 2009 and passed in 2009-10 and are still trying to pass more. State aid so states don't have to cut their payrolls in the future but also so they can bring some of those jobs back. Another problem that states have had at least going back to the Great Society years in the 1960s, is what's called. Unfunded mandates where the Feds tell them that you have to do this whether its in education or Medicaid to use. As examples but then they don't provide the states with the resources to pay for those services and then get stuck with the bills.
A good way to fix the debt and deficit issues of both the states and Federal Government, is to eliminate unfunded mandates. And then turn the public welfare services that both the Feds and states provide completely over to the states. For them to run, we are talking about 2T$ annually in revenue that the Feds would no longer have to worry about financing. And then the Feds would play the role of regulator layout basic national standards for the states to follow. To use as an example every American qualified for a certain public service that the states have the resources. To provide that individual the states would have to cover that person if that individual is qualified for those services. And then make these programs self sufficient new revenue to pay for them so the states don't get stuck with additional bills.