TechCrunch is reporting that technology investor Tim Draper is proposing a ballot initiative that would see California broken up into six states. His plan, called “Six Californias” and available to read on TechCrunch, is currently lacking meat on the bone. One of his main points is the plan would break up monopolistic power: “Competition is good, monopolies are bad. This initiative encourages more competition and less monopolistic power. Like all competitive systems, costs will be lower and service will be better.”
That statement seems counter-intuitive to how he’s proposed the state be fragmented. The proposal would create state monopolies through concentration of industry. It sounds rather Hunger Games-esque with each state being a district with a specialization. Generalizing, we’re looking at the Bread Basket State, the Entertainment State, the Tech State, the Timber and Marijuana State, the Wine State, and the Warehouse and Distribution State.
While Draper’s proposal suggests the plan will result in “lower costs” it doesn’t address the added cost associated with intrastate vs. interstate commerce. For example, what will happen when the Bread Basket State, which currently provides a great deal of the food and dairy for California, no longer receives the significant tax support that comes from other regions?