It's already happening. Part of the "stimulus" spending is to help states in financial crisis avoid laying off state employees (thus "jobs saved"). But this means that we taxpayers in relatively responsible states are being taxed to cover the out-of-control spending in meltdown states. Just like the auto industry and real estate bubble, the current leadership just can't let failed businesses, burst economic bubbles, or wanton state governments go the way of all things. And continuing to prop up poor performers is just delaying any real recovery (read "jobs").