Well, the honest answer is "sometimes." People obviously don't simply pack up and move when the taxes are 0.1% lower on the other side of the country even if it

Well, the honest answer is "sometimes." People obviously don't simply pack up and move when the taxes are 0.1% lower on the other side of the country even if it is rational. But that doesn't justify ignoring common sense when crafting economic policy. When the federal government started subsidizing higher ed loans, it is not some unimaginable outcome that higher ed prices will increase. Banks, colleges, students, and parents are all operating in their own self-interest, but by artificially making more money available to consumers, they are naturally willing to spend more. It's just a sign of really bad policy when nobody is cheating the system and everyone is following the rules, but it results in really bad outcomes. And it's even worse when that happens and blame is passed to those rational actors (banks, colleges, etc.) because that further justifies bad policy.