A recent study published by the National Bureau of Economic Research found that President Biden’s first multi-trillion dollar ‘rescue’ plan favored blue-states and held a partisan bias in the allocation of funds unlike any previous federal bailout. The report suggests that these states came away with nearly $300 more per person in federal funds than other states. In part, the federal funding formula used in the ‘rescue’ plan looked at states that suffered from unemployment the most.
 

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Hi John,


A recent study published by the National Bureau of Economic Research found that President Biden’s first multi-trillion dollar ‘rescue’ plan favored blue-states and held a partisan bias in the allocation of funds unlike any previous federal bailout. The report suggests that these states came away with nearly $300 more per person in federal funds than other states. In part, the federal funding formula used in the ‘rescue’ plan looked at states that suffered from unemployment the most.

It does not take an economist to tell you that when businesses are locked down, citizens are going to remain unemployed. However, the larger issue remains that this administration is favoring states that ruined their own economies. It should come as no surprise that these states are now seeking to misuse the extra federal funds they received. For example in Michigan, Leftist Governor Whitmer is proposing utilizing the $300 million in COVID aid to increase the minimum wage to $15 an hour – what’s that have to do with coronavirus relief?

This is what happens when liberals increase the power and size of their own governments. On the flipside, conservatives continue to champion the principles of limited government and a decreased tax burden.

Sincerely,

Casey
Deputy Executive Director
State Government Leadership Foundation



 

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