The Cost of Independence

Gaelan Brown at Vermont Commons, has written an interesting piece about buying our independence. The idea is that the Feds might accept a State's determination to become independent following negotiations on the State paying off its share of the national debt in a manner similar to the way an investment group buys out a subsidiary of a corporation. He estimates that debt to be $34,800 per person. (The figure for Ohio is $400.2 billion, which is a little less than the gross domestic product for Ohio in one year). He suggests that the economic pain can be minimized by the new Republic selling long-term bonds to its own residents.

Mr. Brown's conclusion is one we all need to consider:

"But that would mean that on average, each Vermonter would need to buy $34,000 worth of 'Second Vermont Republic' bonds, perhaps accessing cash via home-equity loans? *

OR, we could wait ten years until our share of the national debt has gone up to $100,000 per person.

OR, we could just keep our fingers crossed that Barack will 'save us' and keep passing off our obligations onto our children and grandchildren.

I think it's helpful if we reality-check ourselves and consider secession in this context. This is where the rubber meets the road."

One point Mr. Brown overlooks: a seceding State can also claim the per capita share of the Federal Government's assets for its population, and reduce the debt by that amount.

This will be difficult for the first State out, but easier for those that follow.

* Mr. Brown may need to consider one reason this crisis occurred -- too much mortgage debt leading to foreclosure.