Freakonomics Radio23 Jul 2025

Why Does One Tiny State Set the Rules for Everyone? (Update)

Until recently, Delaware was almost universally agreed to be the best place for companies to incorporate. Now, with Elon Musk leading a corporate stampede out of the First State, we revisit an episode from 2023 that asked if Delaware’s “franchise” is wildly corrupt, wildly efficient … or both?

SOURCES:
- John Cassara, retired Special Agent detailee to the U.S. Department of Treasury’s Office of Terrorism Finance and Financial Intelligence.
- Doneene Damon, director with Richards, Layton, and Finger.
- Travis Laster, Vice Chancellor of the Delaware Court of Chancery.
- Dan Nielson, professor of government at the University of Texas.
- Hal Weitzman, professor of behavioral science, editor-in-chief of Chicago Booth Review, and executive director for intellectual capital at the University of Chicago's Booth School of Business.

RESOURCES:
- “A Silicon Valley Giant Calls for a Delaware Exodus,” by Andrew Ross Sorkin, Bernhard Warner, Sarah Kessler, Michael J. de la Merced, and Danielle Kaye (New York Times, 2025).
- "Financial Secrecy Index," by Tax Justice Network (2025).
- "Annual Report Statistics," by Delaware Division of Corporations (2023).
- What’s the Matter with Delaware? How the First State Has Favored the Rich, Powerful, and Criminal — and How It Costs Us All, by Hal Weitzman (2022).
- Global Shell Games: Experiments in Transnational Relations, Crime, and Terrorism, by Michael G. Findley, Daniel L. Nielson, and J. C. Sharman (2014).
- "The FATF Recommendations," by the Financial Action Task Force (2012).

EXTRAS:
- "Will the Democrats 'Make America Great Again'?" by Freakonomics Radio (2023).

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