Viewpoint: Matthew Yglesias
From Slate.com: “German taxpayers could simply finance open-ended transfer payments to their poorer cousins the way Massachusetts subsidizes...
“German taxpayers could simply finance open-ended transfer payments to their poorer cousins the way Massachusetts subsidizes Mississippi, but eventually their patience will stop. Americans in Massachusetts and Americans in Mississippi do feel themselves part of the same country, sharing language and culture. Germans and Spaniards do not feel the same. And, in fact, all possible solutions [to the euro debt crisis] tend to founder on this same point. Germany could tolerate higher inflation or flip its tax system around to accommodate southern Europe’s needs, but German voters want the German government to respond to their needs. The impulse is understandable, but the practical consequences are disastrous.”
Matthew Yglesias in Slate.com