Rick Perry : less regulation, less taxation and less litigation. - But there are lots of countries with no regulation, little taxation and no real threat of litigation, usually also where wages are low and much of the wealth resides with a tiny slice of the elite.

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POLITICO.COM -
Rick Perry's economic race to the bottom -
August 25, 2011 -


By JACK MARKELL -
Jack Markell is the governor of Delaware. He served as chairman of the Democratic Governors Association in 2010. -


Rick Perry's economic race to the bottom


Some excerpts :

Perry argues that if the nation adopts his approach to business development — based on less regulation, less taxation and less litigation — the economy “will absolutely take off like a rocket.”

Perry’s priorities are not unimportant. But there are lots of countries with no regulation, little taxation and no real threat of litigation — usually also where wages are low and much of the wealth resides with a tiny slice of the elite.

That’s a lousy model for middle-class Americans.

My experience in business — working for McKinsey, Comcast and Nextel — leads me to favor a different model for our nation: one focused on strengthening the middle class.

Reasonable taxes and appropriate regulations are important — but what drives wages is innovation. And innovators care far more about access to skilled and inspired talent than just about anything else. They’ll pay to get them.

The model favored by Perry is fueled by low-wage jobs, which creates a race to the bottom. The middle-class model involves competing with other countries in a race to the top — to attract research and development operations, high-end manufacturing, design shops and the like.

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