Monday, February 11, 2013

Race to the top

The benefits of living in a federalist system include not only experimentation ("States are the laboratories of democracy" as Justice Brandeis said) but also competition as residents and businesses can vote with their feet. 

Texas governor Rick Perry is advertising the benefits of living and doing business in Texas to Californians.  Gavin Newsom, former Democratic mayor of San Francisco, says he makes a good point:

“He’s getting all kinds of press up and down the state, and why? Well, because he’s leaning in. He’s in the game. He’s getting in our heads.” Newsom ought to know. In 2011, he accompanied a group of state legislators on a fact-finding trip to Texas to interview former California business owners about their reasons for moving. Newsom told me at the time: “I am impressed with the focus on job creation I’ve seen here. We need to have a more balanced business climate in California.”

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