New york loses amazon, but good governance wins america magazine 4 gas laws


On the other hand, we live in a world where we often have to accept the second-best possible outcome. There are a lot of distortions in the real world. For example, state and local governments routinely give tax breaks and subsidies to professional sports teams; no governor or mayor wants to let a major team leave the state or city during their watch. Sports teams bring in tourists for big events, but they do not generate many high-paying electricity distribution map jobs, and not all taxpayers are sports fans. So if this game of tax “arbitrage” is being played across the country, why not gas pain left side play the game with Amazon and at least get high-skilled jobs, as Governor Cuomo was willing to do?

The actions of our New York gang could be compared to the academic economists in the United Kingdom who supported Brexit. Their issue was simple: Why should U.K. taxpayers support a bloated European Parliament—with two locations, one in Brussels and another one in Strasbourg, as well as a General Secretariat electricity word search answers in Luxembourg—and a European Commission that is forever passing needless laws such as specifying what ingredients constitute a Greek salad? Better for Britain to just have low tariffs and reap the benefits of free trade on its own, without working with a cumbersome, highly paid European bureaucracy.

But the New York experience is different in one important respect from Brexit. We live in a world of frictions, and the long-run benefits of extricating the United Kingdom from the bloated European Union bureaucracy will come at a very high cost of job losses in the short and medium run. Meanwhile, New York is surely losing employment opportunities in the short run, but the gang who stopped Amazon are not creating orlando electricity providers massive dislocations in commerce and finance. Brexit may be a good example of a popular uprising against a bloated bureaucracy, but it certainly does not stand out as an example of prudence in collective social choice.

What is the lesson for public policy economics? The first-best cooperative outcome would be for all state and local governments across the country to refrain from tax gas tax deduction breaks and subsidies for corporations and sports teams and just compete for jobs on the basis of comparative market advantages and geographic considerations. But this is unlikely to happen. We are in the world of Nash outcomes (named for the mathematician John Nash and featured in the book A Beautiful Mind, by Sylvia Nasar, and its film adaptation). In a game governed by the Nash equilibrium, strategies and decisions have to be made on the assumption that other players electricity production in the us are operating out of less-than-perfect and less-than-altruistic objectives.

A good example of a Nash outcome would be going to dinner at a restaurant with a good number of folks, most of whom one does not routinely see, and ordering the most expensive items on the menu because you know that the bill is going to be evenly divided. Why not? Why should anyone be frugal, to keep costs down for all, if there are no assurances that the others are behaving the same way? Nash outcomes highlight gas chamber the coordination problem in all interactions among decision makers.

This action, as J.F.K. might say, is a profile in courage. It also sends a message from New York to the rest of the country that some public officials are no longer willing to play the “tax arbitrage” game, even with giants like Amazon gas gangrene. Three cheers for our New York officials who bucked their governor in a welcome show of good governance. Following the shared restaurant bill analogy, there are times when it is refreshing to see someone who does not try to play the Nash game by ordering the most expensive items on the menu.