Competition Between Governments is Illegal

I was unaware that it was the case that it was illegal to select a location for a business based on how favorable the legal environment was in that state.  I thought I would allert readers so that people can avoid this.

Boeing is being sued by the National Labor Relations board because they believe that it located the plant in South Carolina in order to avoid labor unrest.  Appearantly this is against federal law.  What this means is that companies are supposed to be happy with labor unrest, or at least not so unhappy that they change locations in order to avoid it.  This puts judges in the possition of peering into executives' heads in order to discern what motivated them to prefer one location over another.

I suspect that even if this law can be implemented, it will fail to accomplish its stated aims in the long run.  This will make it more important for companies to assess how friendly a state is to unions when selecting a location for a new plant.  Suppose that instead of being an established firm Boeing were a new company just starting up.  Clearly it wouldn't be illegal for Boeing to set up in South Carolina to begin with.  Now if it seems that a state might be favorable toward unions, then it would be important for a company to avoid setting up shop in that state, since doing so could potentially do irreparable damage to the firm.

This seems like one of the ways that people are trying to promote government monopoly.  Some people don't want people to be able to choose their government as individuals. They prevent this by shifting government to the federal level.