by Kane » Wed Jan 02, 2013 1:55 pm
I don't see the developing geopolitical environment being very supportive of such a move. The dynamics would work against us. There is no possible way for a society based on reason to compete in a global economy largely predicated on rent seeking and state backed corporatism. It would lack any and all competitiveness or be relegated to an existence within the margins.
Internally, several states largely dependent on federal funds would lose access and standards of living would probably fall (See: poor states). They depend on the fed exactly because tax revenue from local sources is already stretched. You could make the argument that the means of collection are at fault but when I look at states like Louisiana I don't see much potential for alternative sources of revenue outside of taxing the poor more which would just depress the entire situation further. You could tax consumption and consumption only but even then you'd have a temporary shortfall (Assuming a new equilibrium is met) that'd need to be backed by some sort of outside guarantee.
All routes potentially lead to too much pain in the short run. We have one of the most dynamic labor pools in the industrialized world...these changes would require it to be even greater. Lots of unhappy people. And in my mind, not worth the cost (To say nothing of my opinion on the pursuit of an ideology coined in reason and objectivity).