These things are easier to do in some places than others.
Let's compare and contrast what would happen for example, with the shock in
the United States as compared to a shock that would happen in the Eurozone.
I'm in Connecticut, if in Connecticut,
we get a very bad economic shock, there are automatic stabilizers
in the federal system in the United States that enable us to recover from that shock.
The citizens of other states all pay taxes to the federal government and
the federal government makes transfers to unemployed people in Connecticut.
If Connecticut all of a sudden had the most unemployed people in the country,
Connecticut would automatically get the most assistance from Washington.
There's no vote and there's no way for
citizens of other states to pull back on that in the short term.
Similarly, while there are cultural differences in the United States,
there are many people in Connecticut with roots and friends and
family in other states of the United States.
And who were able to move if there were a shock here from Connecticut to other
parts of the United States without it being an enormous problem for them.
Compare that to what goes on in Europe.
When there is a shock that happens to Greece or to Portugal, while it
is legally possible for people from Greece and Portugal to move to Germany or
to France and many have, there are cultural differences,
linguistic differences, religious differences in many cases.
And just the lack of having roots in those countries that make that movement more
difficult.
So if you were unemployed in Greece or in Portugal, it is not so
simple for you to go and to find a job in Germany.
Not as simple as it would be for someone from Connecticut, for
example, to move to California.