Often economies run on star cities, and if your country's economy is disconnected from those star cities because of a breakup, your country's economy will also suffer.
There was also the entire communist central planning thing that made resources misallocated.
Despite not having studied history or economics or politics or war, surely you must see the risks of dismantling an economic system that has raised billions out of poverty without any type of replacement?
It's like a diabetic stopping their insulin in the hopes something better will come along.
Looks like both the Democrats and Republicans are fighting each other and in turn ruining the economy and the country. Already 30 trillion USD in debt and high inflation and high gas prices. Electric cars have no infrastructure yet and are expensive and not everyone can afford one, not the poor who own a $500 Toyota car from the 1980s.
China and Russia will take over the position that the USA used to have as a super power. We got a civil war 2.0 ruining our nation.
They had all the capital they needed to diversify their economy when it would have made a difference. Now it's too late and they will reap the consequences.
Sad thing is that the defectors are clearly the short-term winners in that case.
Long term, the purchasing power of the Valley will be diminished and financial services disrupted. This might result in substantial disruption of businesses and cascades of business failures. Which may in turn affect defectors. But this seems to be the only negative feedback loop.
Kind of a United Fruit model of economic investing which resulted in the pejorative banana republic and resulting cries of American Imperialism, and subsequent loss in economic growth as AmCos pulled out due to instability.
Wonder if they can avoid a similar fate. Maybe people are wiser on both sides, one can hope.
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