Regulation Regulatory Reform and State Economic Development by Murray Weidenbaum Murray Weidenbaum is chairman of the Center for the Study of American Business. Each state possesses a unique array of assets and liabilities in attracting economic development in an increasingly competitive and global marketplace. There are no boilerplate approaches that will work all the time. Nevertheless, regulatory reform can improve any state's economic prospects.
Most states have important and unique advantages.
But the liabilities that many states suffer in the competition for economic development should not be overlooked. These weaknesses range from burdensome regulation to arbitrary taxation to a large underclass of people who have dropped out of the modern economy. Some of these shortcomings can be dealt with only via a long-term strategy, which may include revamping elementary and secondary education and promoting the role of the family. In brief, it can and should help to create a positive and competitive business climate conducive to setting up new enterprises and expanding existing ones. That is the most basic way of encouraging job formation and rising income levels.