Delaware: Still Evil

Delaware may have redeemed its poor reputation slightly on Election Day, when its voters declined to send Buddhist witch Christine O'Donnell to the Senate, but the state is back in many Americans' bad graces thanks to its virtual blockade of Interstate 95. Renovations to Delaware's toll plaza, which already charges one of the highest tolls on the East Coast ($4 each way), have closed most of the crowded highway's lanes during the busy holiday travel season, leading to "10-mile backups" on Thanksgiving weekend and potentially greater jams during the Christmas holiday. The plaza's renovations should, however, justify all these headaches, as they are rumored to include a special negative-toll lane for corporate vehicles and a flogging lane for the poor.

The Corporate State

Fred Clark, a Delaware-based journalist, has recently written an essay explaining why his home state, the first to ratify the Constitution and the last to outlaw flogging,* is the headquarters of 63% of the United States' Fortune 500 companies. State leaders credit Delaware's Chancery Court, which they describe as a font of wisdom on corporate law. More cynical observers, like Jonathan Chait in The New Republic (whose 2002 article Clark cross-references in his essay), instead give credit to Delaware's highly permissive general-incorporation laws and its lack of usury laws. Thanks to corporations' legal personhood and the Privileges and Immunities Clause of the U.S. Constitution, a company chartered in Delaware can operate elsewhere in the United States without having to worry about other states' more restrictive regulations. In return, Delaware derives a third of its budget from corporate charter fees - and the rest, I assume, from the state's tollbooth on I-95.


*Thus earning it a brief but favorable mention in Robert Heinlein's political science-fiction novel Starship Troopers (1959). Delaware outlawed flogging in 1971.