Net Givers v Net Takers Part Two

As a follow up to my September piece, we could also take this further, and to a very scary conclusion.  Imagine that those who are tired of this wealth transfer all move to the states with the lower tax burdens mentioned above and the “taker” states are left bankrupt and floundering as a result.  In order to bailout the taker states, the Federal Government then decides to shift the tax burden to where the revenue is, namely the fiscally responsible states.  Do you think that those states would stand for that?  No, they would protest.  Wouldn’t you? Threats to secede would ensue, the Federal Government would step in to prevent it.  From there you have a dissolution of the Republic, or worse, another Civil War.

If this sounds far-fetched, take a look at the articles below regarding Catalonia trying to separate from Spain and Scotland trying to separate from Great Britain.  They cite being fed up with being the most productive, self-sufficient regions in their respective unions, but having their tax revenues propping up poorer regions.

This reminds me of a saying my father told me many years ago.  I was only 8 at the time, so I didn’t fully understand it.  But now I do.  I asked my Dad why there were poor people and why no one was helping them.  He answered me, “Son, once upon a time there were the Haves and the Have-Nots.  The Have-Nots were envious of the Haves, for obvious reasons; they “had.”  So then there was a great war, and the Have-Nots won.  Then there were the Haves and the Have-nots.”

 Seems to me Europe is the canary in the coal mine here.