Federalism: States Play Dirty

Because of the economic crisis, many states like California are scrambling to manage their state budget deficit. The key to easing the difficulty is to keep businesses running and to continue providing jobs. Michael Bergeron, business development manager for the state of New Hampshire, knows this. He has been advertising New Hampshire's low taxes because "That's what distinguishes us as a brand." However, this promoting of state brands has recently gotten hairy. A trend to ridicule other states has risen. Nevada has put up billboards directly bashing California's economic situation; "Keep Your Business in California and Kiss Your Assets Goodbye." In response, California circulated an ad equally as biting; "What happens in Vegas stays in Vegas, but what happens in California makes the world go 'round".

What is the cause of this playground drama? States are pined against one another in economic competition. The ads and billboards are outrageous. Each state has its own regulations, both beneficial and harmful for businesses, and instead of promoting the benefits, states have decided to play dirty and criticize competitive neighboring states. Is this the type of healthy competition that Madison had hoped for in Federalism?