Nov 9, 2010

The Next War Between The States

I re-watched Jon Stewart's interview with RIck Perry from last night a coupla times, and something popped into my brain.

1) the attack on Federal Power continues unabated - the approach being to starve the beast.  Extending the Bush tax cuts is being sold to us as "economic stimulus", but the point is to cut off the funding for all federal programs except Defense, Law Enforcement, and just enough social services to keep people from getting too riled up.
    
2) the attacks are aimed at having that power devolve to the states where the Repubs have majorities in 26 state legislatures, which gives them a big advantage because they get to redraw the voting districts, which gives them more power and control right down to the local jurisdictions.

3) the competition between states for companies and their jobs has kicked in to a higher gear.

We've entered an era of economic disruption that is manifesting itself in what looks like a race for the bottom.  Perry said over 100 businesses have left California and relocated to Texas because Texas has a more business-friendly environment (Regulation, Tax, Lawsuit, etc).  To me this means we can look forward to a rash of companies outsourcing jobs from a "labor-friendly" state to one that has stripped away requirements aimed at wages, safety net, work place standards, environment & consumer protection - you name it.  Other states will think they have little choice but to respond in kind because there's no shortage of phony populists who'll gladly lead that charge.

Can you say "Feedback Loop"?  It gets worse before it gets better - if it gets better.

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