Abstract

Abstract Conventional wisdom holds that the rigors of fiscal competition unleashed by globalization are forcing governments to roll back welfare programs, reduce or eliminate taxes on capital, and reduce regulation on mobile assets. In Freer Markets, More Rules, Steven Vogel attacks the latter contention, arguing that regulatory reform has been more often reregulatory than deregulatory, though it is generally undertaken with an eye to increasing market competition. He also maintains that governments have acted autonomously of social interests and market pressures in formulating regulatory reform. While Vogel is mistaken to contend that there has been no net reduction of government control worldwide, his revision of the conventional wisdom requires a fresh look at how susceptible states really are to the global competition for revenue.