States of Inequality: Fiscal Federalism, Unequal States, and Unequal People

Two potential solutions that have been proposed for addressing the fiscal disparity among states are (1) following the lead of other federal nations and adopting a system of interstate fiscal equalization or (2) ending federalism and fully nationalizing key programs. As I will discuss, neither of these polar solutions is feasible or desirable. Instead, drawing on contemporary federalism scholarship and on scholarship in the area of fiscal federalism, I will argue that the federal government should address fiscal disparities by engaging in calibrated matching grants across an array of programs. […]