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Adele Pace - http://www.pacelegal.com.au - For more resources on internet law, e-commerce and intellectual property.

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Coast to Coast

States Compete for Innovation and Jobs

Perhaps you have noticed how state governments are courting large corporate entities to come into their states and set up shop. Retail businesses can usually find a deal to pay little or no sales tax for a decade or more to move in and bring jobs. Manufacturers can find their building fees waived and their building upgrades paid for. After all, a large manufacturer is also bringing jobs, lots of them. States know they need more people paying into the system - state income tax for instance and they know those employees will buy homes and pay property taxes, and buy cars and other items and pay sales tax.

State's therefore are betting on the future in doing this, yes, they win, still there is a downside to all this, as the competitors of these corporations may not have gotten the same deal in that state or elsewhere. For instance, look what companies do with the bidding wars; "What will you give our XYZ company if we build our products in your state and bring in jobs?" "Will you give us tax breaks for the next 50-years?" etc. Look at Boeing's recent moves, or Amazon, or GE, on and on. So, is it fair for those states to make those deals and investments or not?

These states are indeed doing this in competition, but in doing so they un-level the playing field for smaller companies to compete, That is if there are smaller competitors in their sectors anymore because usually the corporate lobbyists work to create regulatory barriers to entry with the legislators at the state and federal levels. Although to be fair, it would take an insurmountable amount of capital to come along and compete with Boeing, GE, Intel, or any other major US corporation.

So, yes, companies are bringing jobs and innovation to their states. China does it, why should our state governments as well? Okay, I get that, but in another way it could end up doing the opposite for innovation by preventing new start-ups who cannot get the same deals. If we slow innovation, we all lose, just look at the auto sector today, for instance; where is my flying cars?

Is this author against corporate gifts to entice companies to come and set up shops to provide jobs and innovation? No, not completely, however as an entrepreneur, I also see other issues - and these too must be discussed, as they are really serious considerations. If the government becomes a partnership with every business, there will be no way those governments can harness the efficiencies of free markets with a system we would more recognize as state run capitalism. Please consider all this and think on it.

Lance Winslow has launched a new provocative series of eBooks on Economic Concepts. Lance Winslow is a retired Founder of a Nationwide Franchise Chain, and now runs the Online Think Tank; http://www.worldthinktank.net


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States Rights: The State of Legal Marijuana







"Legalization is being sold as being a cure to ending violence in Mexico, as a cure to state budget problems, as a cure to health problems. The American public should be skeptical of anyone selling one solution as a cure for every single problem. Legalized, regulated drugs are not a panacea--pharmaceutical drugs in this country are tightly regulated and government controlled, yet we know they cause untold damage to those who abuse them.

To test the idea of legalizing and taxing marijuana, we only need to look at already legal drugs--alcohol and tobacco. We know that the taxes collected on these substances pale in comparison to the social and health care costs related to their widespread use."

Clearly the federal government is not on board with legal marijuana in California sponsoring the Super Bowl Half Time Show in 2020. How does a state's citizens respond to this statement when their population votes on an initiative that could help their economy to recover from the most serious economic crisis in their state's history? Does the federal government have a right to tell a private citizen that even though they have voted on a principle in majority that they still do not have the freedom to exercise this right as afforded to them through popular vote?

Thomas Jefferson, was quoted as saying "The government which governs least, governs best". The Jefferson authored Declaration of Independence, the very document that the federal government is founded on, declares that we all have "certain unalienable Rights, that among these are life, liberty and the pursuit of happiness." The federal government will seek to deny citizens rights they have afforded to themselves through their state's popular vote, clinging to aging and archaic rhetoric. The stance and posturing does not govern least and it certainly does not govern best; denying their citizens the life, liberty and the pursuit of happiness that is professes its very existence for.

Bob Carr is an activist in the movement to outright legalize marijuana in California. Visit http://www.legalmarijuanacalifornia.com for more news, views and information on the fight for legal marijuana in California and the rest of America.

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