Economic Policy Diversity

Arnold Kling

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In an essay on diversity in economic policy, I propose dividing the United States.

By splitting into the virtual regions of Miltonia and Hillaria, we could run a "natural experiment" to see how things work. Perhaps after ten or twenty years, we Miltonians will come around to the point of view that "It takes a village," and we will emigrate to Hillaria. Or perhaps the Hillarians will decide that "There is no free lunch" and move to Miltonia. Or it could turn out there will be self-selection, with each population happy to continue its policies.

For Discussion. Would it really be possible for neighbors to live under different policy regimes?

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CATEGORIES: Optimum Currency Areas , Regulation and Subsidies

COMMENTS (2 to date)

Latest Comment

Tomas Kohl writes:

The problem with this is: Hillarians would not let Miltonians be Miltonians. "Laissez-faire" is a foreign term to them; "We know better" is what they believe in.

Posted May 19, 2003 5:15 PM

Mcwop writes:

I argued with someone about this idea once, and the infrastructure already exists now in the form of the 50 states. Example: Maryland has a state income tax - Florida does not. The person that I argued with is a proponent of national healthcare, and was blaming the Republicans for not supporting it. Well this person was from Massachusetts, and I argued why doesn't Mass offer state healthcare for all of its citizens? The state is liberal enough to pass such a proposal. I belive Oregon tried to push such a proposal through (although it was poorly structured). The federal government is not the only game in town.

Posted May 21, 2003 8:02 AM

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