After a National Divorce, Where Does the Debt Go?

Source: Libertarian Institute
by Ryan McMaken

“The topic of secession has become increasing more common in recent years as various regions and minority populations (e.g., California and Texas) has openly suggested breaking away from the United States. The idea is forwarded with varying levels of seriousness, but the fact that talk of secession is increasingly done openly and repeatedly suggests increasing strength for what the political scientists call ‘centrifugal’ forces. That is, cultural and political trends increasingly point toward growing separation and away from increased union. But even those willing to entertain the idea of national separation will bring up many practical questions about how such a separation would actually take place. One of the most common questions among these people is: what happens to the government’s debts in case of secession?” (08/04/22)