The Last Resource: How Nevada is more like Iceland than Arizona

When the Great Depression hit, Nevada had a more serious problem than most.  The silver rush had waned, as all rushes do, and life in the desert was too hard for many.  The population dwindled, and the economy, already gutted by the mining bust, nearly imploded with the impact of the market crash.  The state had no resources to build any kind of economy.  Nevada needed population, and fast. 

The legislature came up with a brilliant plan.  Earlier in state history, unregulated gambling was rampant, but had since been shut down.  By reopening the gaming sector, regulating it, and taxing it, the state built an economy remarkably fast—gaming continues to be the primary pillar of the state economy.  Relaxed marriage and divorce laws also helped bring people into the state.  The Nevada government managed to, absent any significant natural resources, build an economy out of nothing by leveraging its sovereignty.

Iceland, in a similar, but rather more altruistic move, has passed what's called the "Iceland Modern Media Initiative".  The island nation has suffered terribly at the hands of both our current economic crisis, and a pretty mouthy volcano.  The country is essentially bankrupt, and, though I cannot find data to back it up, it would not surprise me if there were an exodus in progress.  As a response, Iceland is opening its doors to political dissidents.

The act will create legal fortifications against foreign libel suits, market the country as a giant server farm in the North Atlantic, and basically protect anyone who wants to live or store data there that wants to say things about oppressive governments, homeopathic remedies, or predator drones.  It's also got a FOIA that can deadlift a Nissan.

Is it enough to bring in the Uyghur-speaking and/or Wikileaks-loving masses?  Let's hope so—this kind of experiment in state marketing marries the leveraging of sovereignty with positive moral choices, rather than just permissive ones.  It would be proof positive that you can use your ability to control your own laws to bring in an economy without selling your soul.

Back in America, we have 50 of these guys running around, and only one has really done anything with their sovereignty or even their ambiance to reel in long-term dwellers. Folks, a computer programmer can live in New York just as easily as he can live in Oregon.  Start selling your image!  Utah, play up the family-friendly!  Post Donnie Osmond's image on every billboard!  New Mexico!  You've got a great place for solar power AND Hispanic culture!  Start telling us about it!

I'm looking at the states here as franchises of the U.S.  They exist as smaller iterations of the overall American Dream, and each of them has the ability to make itself into a place that people want to live in, work in, and vacation in.  And for some reason, they all focus nigh exclusively on that last one.  Of course, as franchises, they can't break any of the rules of the parent company, but they've got enough leeway to make themselves into something cool, at least for some segment(s) of the population.

This is why Arizona is run by fools.  Advice: when you're in a recession whose flashpoint seems to be your housing industry, and people leave like moviegoers after a barfing sound, you should not pass laws that potentially antagonize 30% of your population.  To quote those stupid cats: ur doin it wrong.  You want to invite people, not drive them away.  Whether you agree with 1070 in principle or not, you must admit that in practice, it's likely to deepen and length the recession in the state.