Of course, these reductions in Federal taxing and spending would be accompanied by increases in State taxing and spending. However, these new State-level spending programs would reflect our present ideals and state of knowledge, and be more sustainable, effective, and appropriate than today’s legacy programs. Related government bureaucracies would be relatively lean and efficient, simply because they are new. Successful solutions could be imitated, and mistakes learned from. Competition between States would help governments to stay effective. Dissatisfied people could migrate to States where other like-minded people have gathered.
State politics would get very exciting. They would also get a lot more democratic, because each representative of State congress has a much smaller constituency than Federal congresspeople. Each member of the Massachusetts State Assembly, for example, has about 41,000 constituents, while each member of the U.S. Federal House of Representatives has about 760,000 constituents. Plus, their offices are probably near your house.
The way to prevent a civil war over differing conceptions of what the nation is about is to allow those differing conceptions to live in peace. Worth a shot, anyway.