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How do you prevent a race to the bottom?
Having regions compete to be the most efficiently run seems the opposite of a race to the bottom.
Logan Paul is moving to Puerto Rico for the exact same reason.
Efficiency can, unfortunately, mean underinvestment in infrastructure.
By definition it cannot.
Andorra has no army, neither huge empty landmass that trains and highways have to cross to connect cities. But still probably way more efficient in their competences.
America’s flat tax and low tax crowd has no issue paying for a $1 trillion military. It’s pretty much everything else they hate.
There is no trade off. Singapore have a huge state in scope (welfare, public housing, state owned companies) but a very limited state in scale (tax rates low, small population) mainly because they have a efficient government. The best real world example of the Tiebout Model.
Race to the bottom gets prevented by things like when your power grid collapses during a freeze and you learn that maybe there's a service you might want to buck up on for the sake of future residents.
Is that where San Francisco’s high taxes are going, to make its power grid ultra reliable?
People don’t live in Monaco because it’s more efficiently run A race to the bottom is a real risk. In fact it is already happening The solution is a floor on Government taxation rates agreed internationally for the wealthy... very hard to achieve in practice given power dynamic
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