What you choose to ignore is that California spends more on its schools, has tougher environmental regulations and more robust healthcare coverage, along with more employer mandates and higher minimum wages, all while having a very robust economy, and a budget surplus.
Closer to home, you ignore that Ontario has had years of growth far more robust that Michigan or Ohio in recent years, yet, has much higher gas prices, higher taxes, tougher environmental regulation and more robust healthcare.
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Perhaps, it turns out, business does well where there are highly educated workers available to employ; and those workers choose to go where quality of life is good, even if that's more expensive.
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