"A businessman cannot force you to buy his product, if he makes a mistake, he suffers the consequences; if he fails, he takes the loss. A bureaucrat forces you to obey his decisions, whether you agree with him or not . . . If he fails, he passes the loss on to you, in the form of heavier taxes." — Ayn Rand, The Ayn Rand Letter.
The most profound way to register approval or disapproval of a government is with one's feet. Except for most African- Americans who came to America involuntarily and American Indians who migrated from Asia centuries ago, the United States is composed of people who came because they were drawn by opportunity or escaping less desirable conditions. Some came to make their fortunes. Some came for religious freedom. Some came to avoid famine. Some came to escape prison. Some came for adventure. The migration of peoples has always remained a last resort for those dissatisfied with their society and government.
Nonetheless, this method of registering disapproval is difficult to exercise. Conditions must be intolerable or opportunities great for most people to leave their settled ways, sever their familial bonds, and assimilate into a different and perhaps strange culture.
The situation is somewhat better in the United States. The ease of unrestricted migration mitigates the leverage of individual state governments. Movement between states acts as a referendum on the way state power is exercised. If you don't like the tax rates or level of government services, you can move. For generations, people have moved to different neighborhoods based on the quality of local education or the perception of crime. One of the largest, but most inconspicuous migrations was the massive migration of blacks from the South in the 1950's. African-Americans traveled through Jackson, Mississippi and Memphis, Tennessee, responding to the lure of opportunity in cities like Chicago in the post-war era
Sometimes moving permanently out of state or out of country is unnecessary. People cross state lines to take advantage of different sales taxes or laxer divorce laws. If you want to avail yourself less regulated medications, visit Mexico.
The coming of the information age promises to increase the competition between governments. Government economic policies are constrained by the ability of money to cross borders electronically. If a particular government chooses to inflate its currency, capital will flee. A government can raise interest rates to attract capital, but it must weigh this action against the possibility of slowing growth. Policies that encourage growth will likely attract investment. Ultimately, the bond market as a whole may be more powerful than central banks.
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