New Hampshire is a great place for business, with low taxes and regulation, not to mention thousands of productive Free Staters moving in. Business taxes are decreasing, and they can be be offset with the Education Tax Credit. So should New Hampshire pitch to Amazon? Why not! Andrew Cline of the Josiah Bartlett Center for Public Policy writes,
‘Reaching out and talking up New Hampshire’s many charms is perfectly fine. But we should never cross the line between marketing the state and giving a big company special treatment that New Hampshire’s mom-and-pop businesses don’t get.’
All wealth comes from production and exchange: making and trading goods and services. The two are closely related: the more you trade, the more you’re able to produce. How does that work? Through the magic of specialization.
When you trade, you’re able to specialize in your comparative advantage, that is, what you can do relatively cheaply compared to everyone else. If you didn’t trade, you’d have to make everything yourself: clothes, food, shelter, transportation, health care, etc. You’d be very, very poor. By trading with other people, you can focus on doing one narrow thing really, really well, earning money, and trading that money away for other goods and services that other people focus on doing really, really well.