and for some reason you think the rest of the US wouldn't need to restructure how their industry and economy operated? California is the most important state in the country. There is not one state that's more important to this country than California. It's impossible for the US to operate without California and it's impossible for California to operate without the rest of the US. It'd be more than just a decade or two for recovery. California produces so many goods for the rest of the world/country, it's more than just a few decades. All the infrastructure that would have to be built up to be re-routed would be insane. Plus all these companies that are fully ingrained here would need to move as well which isn't easy either. Plus all the extra money needing to import how much food products we make here would hurt the economy a lot as well.
Well, you're quite the cheerleader for CA.
Plus, you're quite simply wrong. Why would it be that if CA became it's own country it couldn't sell, or buy, to the other states? You do realize that's what countries do - buy and sell their products among each other.
No companies would need to move, other than perhaps some military contractors. You might also like to know that there a lot of military contractors outside of CA.
You might also like to know that there is a helluva lot of agriculture in other states. An awful lot of cattle and seafood etc.
There's also a lot of manufacturing and high tech (Research Triangle etc).
CA, and the rest of the USA, would do just fine if CA left. It would be an inconvenience, e.g., what to do with military bases there or establishing more border chackpoints etc. Heck, CA could establish it's Fed/Treasury and print all the money it wants like the US gov.
We would only lose about 1/6th of our entire federal tax revenue.
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No we wouldn't.
The money CA companies make from the rest of the states would be taxed in the (new) USA. Just like other foreign companies that operate here. Only small businesses that operate soley in CA would not pay income tax to the (new) USA. We'd lose some, but not that much, not near that much.
And that's why that red/blue state study so many are quoting here is utter crap. If the address on the corporate tax return is one from CA it assumes all their profits, and all the taxes they pay are attributable to CA. And that's bullshit of the worst kind.
Fern