If trade is free, investment can still be sucked out of red state by tight blue money. Red staters will hold blue dollars.
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And this is worse than the current situation how? At least they'd have currency to pay for labor!
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Savings end up as paper instead of investment backed by real economic activity. They wouldn't pay labor, would hoard blue paper
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I'm confused. Are you saying nobody would want/accept red paper, such that it couldn't pay laborers and animate the economy?
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Few people would invest in job creating endeavors in red states if they can hold blue paper that gets an above market return.
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Are you saying red-dollar states would overconsume and underinvest, or that they'd have excess capacity / a demand deficit?
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Both demand deficit and low capacity because people would be hoarding blue dollars instead of spending and investing in capacit
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Demand deficits just mean the central bank creates more money. Red states currently have demand deficits *and* no investment.
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Interesting. USA historically had enough labor mobility that this wasn't necessary-- people would leave Detroit for Norfolk etc
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A complicated causal lattice devastated the red states. More housing in San Francisco would also have helped.
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Knew you'd say that. Def part of problem. Def not the biggest part.
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Out-of-work factory workers in Scranton are generally *correct* that even if they could move to area w tighter labor... 1/
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...they still wouldn't have the "good life" they nostalgically remember their parents providing them. (When mid-skill job... 2/
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People had what felt like good lives in the early 1900s. No minimum wage, no restrictions on housing = people keeping busy.
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Not sure they'd agree, but in any case but that econ regime wasn't sustainable for reasons that are kinda, er... Marxist?
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TBC I'm not sure if that's the best description.
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The North had its chance to run
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I agree - but what if that just makes the blue states a military target for resource acquisition?
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What resources? I thought the blue states were service economies. Human capital can't be "acquired" via military.
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The world feel more and more like Richard Morgan's Black Man
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