If I were magic, do you know what I would do? Well…there are several things like getting rid of Daylight Savings Time and I’d make Rick Santorum say, “Oops, I farted” every time he mentions how he’s lost his freedoms, but there’s no point going into all of them if I’m going to make the point I’m here to make….
I would divide the United States into two equal parts just to make a point (after which, of course, I’d put it back together).
Equal in size, equal in resources. I might have to zig-zag the line of demarcation to accomplish this, but since I’m magic, I can make it happen.
One part would be governed by liberals and the other by conservatives. We each share the same Constitution and we have a small tribunal government that governs the same military (we don’t want a civil war, after all), but each side gets to have their dream interpretation and implementation of government as outlined by the Constitution.
What would happen…?
Let’s say that everyone has 6 months from the instigation of the new Divided-United States of America to decide where they’re going to live. At first, there will certainly be a greater influx of people into the conservative states from the simple fact that lower taxes appeal to many people.
There will also be a disproportionate number of unemployed people who migrate to the liberal states because they know that entitlements will come to an end in Conservative America.
But at 6 months the borders close and immigration is subject to the same restrictions as foreign immigration today. We can travel freely with passports and visas, but citizenship comes with regulations.
Conservatives will understand the need for some taxes and so there is a flat 15% tax across the board creating a substantial treasury. It won’t take long, however, for the reality of a flat tax to reveal itself. Any tax at all complicates life for low income wage earners who can’t make basic necessities and without public aid. Poverty grows rather quickly.
A capitalist model without regulations is the conservative dream and an unregulated free market takes off. Motivation to succeed and its rewards keep the engine running, allowing the biggest winners to accumulate without burden.
A class system emerges because success also produces failures. What, in fact, is success, if not measured against those who are not doing as well? Those without the fortitude, cunning, skills or ability to compete, fall by the wayside. Even Conservative Americans realize something must be done to help. Social programs in Conservative America? Never!
“Let them immigrate to Liberal America!” is the cry (even from those who need assistance).
Over in Liberal America things haven’t exactly been dreamy. Taxes had to be raised to support the programs to help those who have not supported themselves and for increased medical and retirement expenses.
In Conservative America, marginal taxes remain low because regressive taxes and fees were increased after privatizing necessary functions. Resources and services are paid for on a Per Need basis but poorer conservatives cannot pay such fees and without government subsidies. Common infrastructure, as well as parks and public recreational facilities, start to decay.
Working class conservatives take their vacations in Liberal America (with an appropriate visa) where taxes support National Parks and recreation facilities keeping them in better condition.
Conservative America has parks, schools and roads that are the crème de la crème because wealth will support the facilities for the affluent, but for the rank and file who cannot afford the fees, the options are to stay home or travel to subsidized venues in Liberal America.
In relatively few years the divide between rich and poor in Conservative America is severe as the wealthiest, with opportunities to invest and make money without increasing production (and jobs), have increased their holdings 250%. The middle class has become the lower class and the growing class of poverty occupies the majority of space.
Liberal America, after several years of struggling to compensate for the inequity caused by the immigration of poorer conservatives, eventually sees taxes come down. As facts support, the majority of people on welfare go back into the work force and contribute to the tax base after using the programs that sustained them through difficult times or furthered their education and skills.
There is no less spirit and opportunity from entrepreneurialism in a public-based economy when ideas work to sustain life, liberty and happiness; the cornerstone of the American economic ideal.
The growing tax base improves schools, roads, commerce, parks and recreation. Increased consumer spending keeps the economy stable and growing.
Ok, enough of this pedestrian prognostication, but actual history corroborates trends when economic principles and regulations are applied or removed.
I may be magic, but I don’t want to do all the work, so here are a couple of charts to give clarity beyond my fable.
http://en.wikipedia.org/wiki/Economic_history_of_the_United_States
http://en.wikipedia.org/wiki/United_States_presidents_and_control_of_congress
