Could we see the end of California as we know it? It may not be as far fetched an idea as you think. Tim Draper a Venture Capitalist, is holding a press conference today and is proposing to the California Attorney General a proposal to split the state into 6 separate states. WOW right!!!
Draper contends that it's "very difficult to govern the state," because of the demographics comprising the state i.e farmers in the central state, techies in silicon valley, Hollywood in and around L.A and the military industry in Southern California. He further contends that it's very difficult for one group to govern from Sacramento and that Californian's have been "under represented" in Washington D.C. Would you agree?
His main reasons for splitting the state up are:
- Time for CA to be properly represented with Senators in Washington
- Encourages more competition and less monopolistic power
- Each new state can start fresh
Of all 6 theoretical states only one would be land locked, an interesting development when considering real estate and revenue from real estate taxes. Under his proposal each state would take a percentage of the population's debt. So what do you Californian's think? I'd like to hear about the chances of this proposal actually passing and how will it affect you in the real estate industry?
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