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Politics : Formerly About Advanced Micro Devices

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To: J_F_Shepard who wrote (529571)11/16/2009 5:32:30 PM
From: TimF  Read Replies (1) of 1574595
 
We have 50 states each of which is different from the others in multiple ways, not 50 identical states, or 50 states selected randomly from tens of thousands (and even with random selection 50 states is an awfully small sample).

Also while higher taxes and government burdens would tend to make a state poorer than it otherwise would have been, being richer may cause a state to have higher taxes and other government burdens. Richer states can better afford this drag on their wealth generating potential. A poor state, with a very high per-capita burden from government may fall apart economically, so it has to keep its government smaller. You could try to adjust for that by measuring the size of the state's government based off its potential to support a government (which would not be linear with GDP, a state twice as wealthy as another state could probably afford a government that was more than twice as big), but that would be a rather complex and somewhat subjective evaluation.

We could try looking at countries. That comparison has a disadvantage that the countries are less similar in other aspects but it has the advantages that their are more countries and that the differences in levels of government are greater. Looking at countries generally less government interference results in more wealth.
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