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Intellectually, I enjoy the idea of the states competing as a free market, but the system has enough friction to prevent that being generally true in practice.

Intellectually, I enjoy the idea of the states competing as a free market, but the system has enough friction to prevent that being generally true in practice. For instance, it's very difficult to uproot your life and move to a different state. * Many people want to live near their family, and moving means either leaving them or convincing multiple other people to leave as well. * Most people won't be able to work remotely so they'll need a new job. * Moving means you won't see your friends in person so you need a new social circle. * Maybe you need to sell your house and buy a new one. The state has to to something pretty egregious to convince someone to move. It's not like switching brands of toothpaste.

lupire 5y ago
yeah it's not a free market, but it is an "(semi-)independent laboratory" system where one state can try an idea and others may copy it if it works well.
jjoonathan 5y ago
> Intellectually, I enjoy the idea of the states competing as a free market I believe one of the core value propositions of the state is addressing perverse incentives that emerge from competition. Untaxed externalities, for example. Due to race-to-the-bottom dynamics, "let's compete on the matter" is equivalent to "let's ignore the perverse incentives." Not great.
- Dracophoenix 5y ago
  That's the point of immigration? "My life sucks here, but I can get what I want there." Treating economic freedom as an "untaxed externality" to be rectified will eventually create economic immobility and stagnation. That has perverse incentives of its own.
rprospero 5y ago
As someone who did all of those things (except I didn't have a house to sell), I feel you've left out one of the biggest barriers: Immigration laws. Imagine if, to switch from AT&T to Verizon, you had to shell out ten grand to Verizon and wait six years, with Verizon being able to add extra hoops and fees at any point in the process? If you fail at any point, Verizon will sign you back up for a contract under AT&T's worst terms. On top off all of this, you still have to pay Verizon's worst rates until the six year period is up. AT&T could probably send someone to your house every month to punch you in the face and you still wouldn't switch. After all, for the first six years after you switch, Verizon will do the same.
- re6fae5Wied5tha 5y ago
- liminvorous 5y ago
  We're talking about a theoretical federal republic where states aren't allowed to restrict immigration, but the federal government isn't strong enough to homogenise the laws here.
  - MagnumOpus 5y ago
    The EU is such an entity.
gwright 5y ago
> For instance, it's very difficult to uproot your life and move to a different state. Even harder to uproot your life and move away from a powerful national government.

lupire 5y ago

yeah it's not a free market, but it is an "(semi-)independent laboratory" system where one state can try an idea and others may copy it if it works well.

jjoonathan 5y ago

> Intellectually, I enjoy the idea of the states competing as a free market I believe one of the core value propositions of the state is addressing perverse incentives that emerge from competition. Untaxed externalities, for example. Due to race-to-the-bottom dynamics, "let's compete on the matter" is equivalent to "let's ignore the perverse incentives." Not great.

Dracophoenix 5y ago
That's the point of immigration? "My life sucks here, but I can get what I want there." Treating economic freedom as an "untaxed externality" to be rectified will eventually create economic immobility and stagnation. That has perverse incentives of its own.

rprospero 5y ago

As someone who did all of those things (except I didn't have a house to sell), I feel you've left out one of the biggest barriers: Immigration laws. Imagine if, to switch from AT&T to Verizon, you had to shell out ten grand to Verizon and wait six years, with Verizon being able to add extra hoops and fees at any point in the process? If you fail at any point, Verizon will sign you back up for a contract under AT&T's worst terms. On top off all of this, you still have to pay Verizon's worst rates until the six year period is up. AT&T could probably send someone to your house every month to punch you in the face and you still wouldn't switch. After all, for the first six years after you switch, Verizon will do the same.

re6fae5Wied5tha 5y ago
liminvorous 5y ago
We're talking about a theoretical federal republic where states aren't allowed to restrict immigration, but the federal government isn't strong enough to homogenise the laws here.
- MagnumOpus 5y ago
  The EU is such an entity.

gwright 5y ago

> For instance, it's very difficult to uproot your life and move to a different state. Even harder to uproot your life and move away from a powerful national government.