It should be fairly obvious that the rhythms of profitability, recurring crises, facility relocations, and subsequent decline in and restructuring of manufacturing would produce both an economic impact on the state and an accelerated political intervention from capital and its representatives in government. Yet the role of the state in capitalism is necessarily a contradictory one. For capital, it is, on the one hand, a necessity for social order, the protection of private property and accumulation, defense in a competitive and violent world, negotiator of the terms of globalization, instrument of imperial expansion, and subsidizer, and, on the other hand, it is ultimately a drain on surplus value via taxation even if much of this comes from the wages of workers. The whole program of neoliberalism, of course, is meant to resolve this seeming conflict by redistributing the costs of the state from capital to the middle and working classes by tax reductions on business and the wealthy, shifting the burden downward and increasing the flow of the nation’s surplus value to capital.

Things are rendered even more complicated by the multilayered nature of the American state, with its federal government, 50 states, 3,000 counties, nearly 20,000 municipalities, and 16,500 townships. 6 No level of government, however, has been exempt from the attack on the state as a cost to capital or perceived barrier to accumulation that has characterized the neoliberal era. In fact, this plethora of governments has become a source of massive tax relief and government subsidy for corporate America. As location, relocation, and outsourcing became means of escaping unions and lowering labor costs in the era of lean production, corporations played one city, county, or state against others in order to receive the tax breaks, subsidies, land deals, and other incentives that looted the public treasury in return for the promise, not always fulfilled, of jobs.