The Laboratory of Democracy

As Nobel laureate Edward C. Prescott reminds us, real cumulative taxation of our most productive citizens is far higher than most people recognize. That's particularly true in certain states like California, New York, and Illinois. In previous Trends issues, we explained how, in a global economy, "jurisdictional competition" siphons risk-taking and talent away from locations that punish it to those that reward it. Furthermore, tax-funded subsidies for dysfunctional behavior encourage that behavior and attract those seeking the subsidies. Not surprisingly, rece.....