Hoover InstitutionStanford University
Why Businesses and People Move to New States

Published March 16, 2021

Many families and businesses choose where to settle based in part on government policies that make it cheaper and easier to work and live. States that make it expensive to hire workers and that adopt stringent rules over the supply of housing unintentionally encourage people and businesses to leave. States that offer simplified regulations and low tax rates provide a higher quality of life for workers and their families.

Discussion Questions:

  1. What policies make it cheaper and easier to work and live?
  2. Why is it important for states to attract families and businesses?

Additional Resources:

  • Read “California Businesses Leave the State by the Thousands,” by Lee Ohanian via California on Your Mind. Available here.
  • Read “Gavin Newsom’s Expensive Promises Meet California’s Economic Realities,” by Lee Ohanian, via California on your Mind. Available here.
  • Watch “Addressing the Housing Crisis,” with Lee Ohanian via PolicyEd. Available here.

Cast

Lee Ohanian

Lee Ohanian

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