[nathanstitt]

That's something I've often puzzled over as well. I've came to the conclusion that a business is made up of individuals, and individuals like to live in nice places.

Nice places are often kept that way by means of regulation - Regulation of both the 'no strip malls' type and the 'no strip mining that mountain' type. Plus maybe they inspect fertilizer plants regularly so they don't explode.

Therefore, I'd posit that strong regulation can actually attract business simply by attracting the right types of people. http://ordinary-gentlemen.com/blog/2013/03/republican-messag... expands on this idea further