States weaponize legal difference to attract commerce as a wealth source

Evidence

Yet differences between state laws are genuine, and significant. The states, in a real sense, compete with each other, using laws as weapons. Nevada, a barren desert state, decided to make money by legalizing whatever was illegal in California (and elsewhere). Its economy flourished because of casino gambling. It was also a divorce mill—​and a marriage mill. Sovereignty, in short, was its main source of wealth. — Lawrence M. Friedman, A History of American Law, 3767

Categorization

• XREF: This is Friedman stating outright what the course sees everywhere: jurisdictional competition as a legal engine, exactly the forum-shopping and corporate-flight dynamic threaded through federalism discussions. — connects to: Free interstate mobility turned American states into competing sellers of laws — Lawrence M. Friedman, A History of American Law, 2374; Western states relaxed usury law to attract money for cheap land — Lawrence M. Friedman, A History of American Law, 3116; Legal prohibitions create supervised illegal markets the state profits from — Michel Foucault, Discipline & Punish- The Birth of the…, 429 (+2 more)

Broader Connections

• States tolerate or promote collusion when they capture a share of proceeds #expands (0.85) — Diego Gambetta, The Sicilian Mafia The Business of…, 512
• Legal prohibitions create supervised illegal markets the state profits from #expands (0.78) — Michel Foucault, Discipline & Punish- The Birth of the…, 429
• States make markets as much as markets determine states #expands (0.72) — Mark Blyth, Austerity, 266