States Poaching Jobs From Big-Government California


This is the genius of federalism, which allows states to compete with one another in terms of policy, at work:

There’s nothing new about governors competing to bring jobs to their state, but rarely has it been this brazen. The Wall Street Journal reports that neighboring states, as well as some states as far flung as Georgia and Tennessee, are stationing official “business recruiters” in California to convince businesses to move their operations out of state.

It’s no accident that California is the main target. The Golden State has the nation’s largest economy, but it is also one of the least business-friendly: A recent CNBC study reported that California has the third-highest cost of doing business in America due to its high taxes and endless bureaucratic red tape.

When the states compete with one another in terms of policy, the people win.

Which is another argument for keeping the federal government small, and unobtrusive. It’s one thing to move yourself, or your business, from one state to another. Moving from one country to another is quite another matter entirely.