On the idea of having allowed the South to secede without the civil war, and whether the US would be better off without the South right now...
The truth is as far as the federal government is concerned, the north-eastern states are net losers in the equation. In all studies done on where federal money is spent it has been shown that the northern states contribute more than they receive and the southern ones receive more than they contribute. This is based on data collected by the Tax Foundation. According to the data for every dollar of federal taxes levied on New Jersey, the state gets 57 cents back in federal funding and contracts. In similar situations are New York, Massachussets and Connecticut.
In addition I really do not see what difference it would have economically. The most likely case is that there would be some sort of EU style economic union, or at least a NAFTA style free trade agreement. So whatever the value the Southern states have economically would not be lost were there to be an amiable parting of ways.
So what if there are major companies in the South? Are they going to stop selling their products in the North or are they going to stop sending dividends to their shareholders in the North?
As far as mentioning Berkshire Hathaway... Since when has Omaha, Nebraska been in the South anyway?
You argue that there are bright lights in the manufacturing sector in the south.. You surely know that the reason for this is because factories in the South often employ lower-waged non-union labor. Oil and natural gas are in any case sold at prices set at a global level as West Coast oil prices after Katrina demonstrated.
Yes America would be weaker militarily and I have already argued that the current military posture is not necessary and even unsustainable. Yes America would have a smaller gross GDP, though I fail to see this having a major negative impact on the lives of the citizens of America.
I was thinking that the South should have been allowed to secede 145 years ago, but if we were talking about today then if anybody should secede its the North-east. Let the United States keep the debt and the defense commitments. There would finally be a functioning 2 party republic, or even better a parliamentary system with a pm. Its not like there are no reasonable Republicans - Senators Snowe, Collins, Specter and Chafee are all from the north-east. The only independent (formerly Republican) senator - Jeffords - is from Vermont. How does the Federal Republic of America sound? (NY,NJ,CT,PA,MA,RI,NH,VT,ME,DE,MD) = GDP of $2.67 trillion = 4th in the world. Population: roughly 60 million. GDP/capita roughly $44,500...
The question is basically, with an economic union established, what value does a political union have if views on all issues are so far apart?