The Shocking Truth: Joining Canada and the U.S. Would Be a Terrible Idea!

Imagine a world where political jurisdictions competed for residents, creating an environment that encouraged low tax rates, limited government oppression, and fostered economic growth. This concept may seem far-fetched in today’s landscape, but it is a notion worth exploring.

1. Reduced Number of Competing Political Jurisdictions
   • The main issue with a potential union between Canada and the United States lies in the reduction of competing political jurisdictions worldwide.
   • A higher number of competing jurisdictions leads to less oppressive governance, as governments vie for residents, preventing them from imposing overly burdensome taxes or restrictions.
2. Effects on Tax Rates and Welfare
   • States in the United States have refrained from setting high marginal income tax rates, as it could drive away high earners to other states with lower rates.
   • This competition among states also limits the level of welfare payments they can provide, as attracting productive residents becomes a priority over enticing those seeking welfare benefits.
3. Lack of Political Competition in Canada
   • While there may not be significant political competition among Canadian provinces to keep tax rates low, the absence of such competition is a result of federal policies.
   • The federal government’s equalization payments serve as an implicit tax on provinces with low tax rates, discouraging them from competing on taxation spaces.
4. Advocating for Break-ups Over Mergers
   • Instead of advocating for mergers of countries, the focus should shift towards advocating for break-ups to encourage more political competition and lower tax rates.
   • Breaking the United States into smaller jurisdictions, for example, could foster economic growth, increase political competition, and reduce the dominance of a powerful centralized government.

While there are certainly downsides to independent political jurisdictions in terms of trade restrictions, these concerns are mitigated in today’s era of negotiated trade agreements aimed at reducing tariffs.

In conclusion, the idea of promoting political competition through a higher number of competing jurisdictions is a compelling concept. By encouraging decentralization and advocating for break-ups rather than mergers, we can create an environment that fosters economic freedom and growth while limiting government oppression. Let’s explore new avenues for political competition and refrain from consolidation for the greater good of our societies.