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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?


To: DMaA who wrote (34994)9/5/2000 11:37:16 PM
From: TigerPaw  Read Replies (1) | Respond to of 769667
 
why wouldn't there be a race among states to highball each other in spending?
The answer lies in a study called "The tragedy of the commons". I'm sorry but I can't remember the author.

Basicly, when the states compete, it is to each of their self interest to not attract too many outsiders with good programs because the influx of new people will outstrip the resources to provide the service. It would be a good deal if free movement of people were not allowed across state borders. Look for example to Alaska, they generally provide very good services since they have a natural barrier to immigration through their weather. You see the same pattern in N.Dakota, Iowa, Montana, and other states which do not receive an influx of people when they provide services.

This is where a federal policy helps. It can limit the incentive to shop for services, and thereby allow the states to provide them for the citizens who are already resident.
TP