The principles of capitalism work and have raised more people from poverty than Communists and Socialists ever dreamed of. And even though Liberals literally fail at basic economics, every now and then they accidentally get one right. See Official: NY tax breaks would apply to ‘Tonight’:
The bill expected to be voted into law in coming days would provide a 30 percent tax credit for a “relocated television production.” Past and current tax credits have gone to new productions starting in New York, such as “Law & Order.”
Hmmm . . . so if you lower taxes, a business will be more likely to come to your location. Shocking. And it stands to reason that if you raise taxes then more will leave.
Are the NY officials being irrational by offering the tax break? No, because they realize that luring the Tonight Show will have all sorts of other benefits. Too bad they don’t apply that across the board.
When you consider how the same behavior applies to countries you can see why jobs get outsourced (it isn’t just the wages).