More subtle than the California Gold Rush or Irish Potato Famine but is just as significant

June 19, 2017

Two stories came to our attention over the weekend:

Illinois may be the first state since 1933 to declare bankruptcy because they’ve chased off too much of their tax base with public policies hostile to entreprenuers, while…

Our home state of Florida has 3 of the top 20 cities in the country for tech job growth:  Orlando (6th), Jacksonville (9th) and Tampa (17th).  ZipRecruiter looked at 8 million active job postings and concluded:

The study listed tax breaks, government policies and cost of living as reasons tech companies are moving to Florida cities.

Huntsville, Ala., was first on the list.

“The tech industry is no longer bound to the coast,” said ZipRecruiter’s Chief Economic Adviser, Cathy Barrera. “As a result, we’re seeing the tech industry expand out of the major metropolis areas, and into smaller regional cities that have since flown largely under the radar.”

In The Spirit of the Laws Montesquieu posited that the invention of The Letter of Exchange was politically transforming because capital could now travel.   In his view it has always been true that:

Commerce is sometimes destroyed by conquerors, sometimes cramped by monarchs; it traverses the earth, flies from the places where it is oppressed, and stays where it has liberty to breathe.

The migration of talent and capital to the high-tech corridors of the Southeast has been more subtle than the California Gold Rush or Irish Potato Famine but is just as significant.  Some states are chasing away their earners, workers, and entrepreneurs; this is their tax base.

The growth corridors of the high-tech South would have a mercantile-like advantage but for the fact that employers can (and do!) simply move in order to thrive under our growth-oriented tax policieslower public sector debt burdensstronger job creation, excellent climate for entrepreneurs, and a superior overall business climate.  (The actual climate happens to be conducive to a great quality of life as well.)

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