I wonder in the coming years if we'll see the US actually become more like the EU. I expect there to be significant competition between Texas and California, in terms of industry, polity and philosophy. As the US continues to be internally fragmented politically, we're bound to see states compete actively, sometimes even to the detriment of other states. While we won't see a significant fragmentation like the EU, we will see a country that's so internally divided, there would be saboteurs and collaborators with enemies. We're kind of already seeing this, for example Texas and Florida shipping their illegals into Massachusetts and NY, states being firmly in the control of one party, with no room for switching governments, and the ever present question of states' rights.
Which is a game-theoretically sound choice given the lack of legal authority to prevent unlawful entry to begin with.
In the EU, you don't see countries arguing about which bathrooms people should use, or what model of creation they should teach children in schools. Yes, there is linguistic separation, but there is very little political and even cultural distinction between European countries, save for some hot button issues like immigration (which is also seeing alignment now).
Ask any European what European culture is, and you'll get a fair melange of what make Europe European (they might mention elements such as architecture, classical music, heck Roman Empire even). Ask an American about American culture and you'll get definitely different answers between Americans from even two red states.
Let's imagine for a second you want to create a startup making cell phones, or cars, or TVs etc. You base in say Texas for the taxes, but workforce can freely move to the Texas from California. They have zero language barrier, they have zero legal barrier. Legal, highly skilled immigrants in California can freely move to Texas for work. The product you make has to conform with both Cali and Texas laws, bud federal ones are unified. It needs to be localized for 1 single language. And it can be immediately sold to the 350mil market with minimal changes. Now if you do the same in France, you are limited with French workforce, because of the language barrier and legal barriers. Then to sell to the whole EU you need to comply with 24 laws and localize to 21 language. And support all that. EU company is less competitive on this basis alone, plus USA doing brain drain (which they foolishly want to limit now) is not helping.
Startups?