I don't deny that New England, New Jersey, and the New York metro region have many creative people and good businessmen. However, most of these states have state and local governments that are far more intrusive and taxing than their counterparts (except California, Washington, Oregon, and Maryland). The Northeast's financial fortunes are to a considerable extent due to the fact that the Federal government is less intrusive and offers lower taxes than most of the Western democracies. The relatively light touch of Washington is primarily due to the more conservative politics of the South, Midwest, and Plains and Mountain states.
Place the seven states (and an eighth state for downstate New York) into a union with socialist-minded provinces like New Brunswick, Nova Scotia, and Newfoundland, and the central government of this federation would likely turn the region into something like a European social democracy, complete with state-run medicine, cradle to grave social welfare, tolerance for pedophiles and transvestites, legislation against conservative Christians preaching the Gospel, illegalizing home schooling, heavy discouragement of automobile use, 60-75% top income tax bracket, etc.
Meanwhile, the US Senate would be rid of 14 mostly liberal Democrat or RINO senators and the Presidential race would be short of 80-100 votes that are either a Democrat shoo-in or highly likely to go for Kerry.