Will Vermont secede from the United States?

There is an interesting development at the intersection of political trends and economic trends. We have been recently covering the economic fissures in some of our largest states. California, Arizona, Illinois and Michigan teeter on the brink of financial crisis, and this in turn menaces the integrity of the United States Constitution. Letting California’s bonds go to junk will have long-reaching impacts – but if the Federal government begins distributing bailouts selectively, there are bigger legal problems at stake. Other states will have recourse to ask for money from the Federal government, making the relationships of the 50 states complicated indeed.

What’s another option for states? Leaving altogether. Now that’s a new trend in these parts.

The state of Vermont has had a secessionist movement dating back over 200 years, back to the time when it was an independent republic. It’s mostly been a topic of discussion over an excess of beer in pubs – until recently. Now, Time magazine reports that seven separate candidates are running for the state senate on a secessionist platform – plus a candidate for Lieutenant Governor. One of the points they raise is that the state is a net positive to the federal government, only receiving 75 cents in services for each dollar collected in taxes. Thus, a way to balance the books for Vermont is to cease paying US Federal taxes, and to move out on its own. And they are forecasting:

By 2020, they foresee Vermont producing at least 75% of its own electricity and heat, using wind-, solar-, biomass- and hydro-power. They want to establish a Bank of Vermont owned by the people of Vermont — freed from the arbitrary controls of central bankers — as well as a local alternative currency, with Vermont pension and operating funds invested not in Wall Street but in locally owned financial institutions.