In the context of the long-term wealth creating model you can also evaluate government regulatory processes. Some government regulation does have a rational basis. Some city councilors think that any business that cannot deal with it should move to Quincy. Government should have no short-term role in economic development. Business markets are short term in nature.
Businesses have to be able to respond quickly.
The very type of long-term role that the government should be playing, the long ponderous analysis, the walk through all the various political constituencies, is the complete opposite of the strengths and analysis necessary to respond quickly to brief market opportunities. The government just does not have that capacity. Businesses will either do it correctly, which means they are profitable and stay in business, or they will do it incorrectly, which means they go out of business and you can ship the resources and assets to other profitable job and wealth generating activities. These are my own views and not those of the Federal Reserve Bank of Boston. I want to say a few words on the issue of Taxachusetts.