3min chapter

Freakonomics Radio cover image

539. Why Does One Tiny State Set the Rules for Everyone?

Freakonomics Radio

CHAPTER

The Hidden Side of Everything

Delaware has established its own rules for how corporations incorporate. You can set up a Delaware company remotely on the internet without giving any verified information. The whole system has enabled tax dodging, money laundering and the flow of dark money into the US political system. How did one tiny state come to have so much leverage? And does anyone care enough to fix it?

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