Day 4 - b Much supplied by business/industry c Offer financial incentives or cut regulations d Can be costly 3 Interstate externalities a Issues

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D. Implications (Optimistic side) 1. Laboratories of democracy 2. Reasons to expect innovative behavior a. Increaded participation of different interests b. Increasingly capable institutions c. Incentives for state officials 3. Innovative fiscal behavior a. Lotteries b. Gambling/casinos c. Strategic planning d. Balanced budgets 4. Innovative policies a. Minimum wage laws b. Immigration laws c. Renewable energy standards d. No-fault insurance e. School vouchers 5. Example of heath care policies (Mass Health Plan) a. Bipartisan law took effect in mid-2007 b. Shapes policies according to income c. All required to have insurance d. Model for other states and federal government? Implications (not so optimistic) 1. Reputation of incompetence and corruption a. History of election fraud (at state level) b. Big city machine politics c. Recent scandals 2. Subject to relocation blackmail a. States dependent on tax base
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Unformatted text preview: b. Much supplied by business/industry c. Offer financial incentives or cut regulations d. Can be costly 3. Interstate externalities a. Issues don’t stay within boarders b. Neighboring states can be affected c. E.g. pollution control policies 4. Potential race-to-the-bttom a. Generous sates become “welfare magnets” b. Incentive for states to slash benefits 5. Economic Hard times a. Recession starting in late 2008 b. Cut state revenues c. Forced cuts in spending Use of Federalism 1. Federalism often not used effectively 2. Rather than a principle, it’s a tool a. Get desired policy outcome b. If you’re losing at one level, try to move authority to another level c. Ad hoc federalism 3. Thus, major questions of jurisdiction often end up in courts a....
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This note was uploaded on 12/05/2011 for the course ENGINEERIN 131 taught by Professor Cytron during the Spring '11 term at Washington University in St. Louis.

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Day 4 - b Much supplied by business/industry c Offer financial incentives or cut regulations d Can be costly 3 Interstate externalities a Issues

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