They both are contemplating policies that will have a substantial effect on business location decisions.
One of the things I’ve noticed (so this means that it is a not-too-scientific conclusion) is that politicians rarely believe that a company will leave a state if business conditions become onerous. Politicians say things like “Our market is too important for companies to ignore it,” or “The companies are just doing this to extract better treatment from us. The companies are [put your favorite inflammatory adjective here] profitable and this threat is not real.”
In the insurance sector there have been numerous examples of state markets “crashing” because of regulatory behavior. For example, New Jersey has recently resurrected its auto market as is evidenced by the entry of a large number of companies. It was near death due to strangulating price regulation and regulatory induced adverse selection and moral hazard. South Carolina had a similar problem, but experienced new entrants after a change of regulatory heart. The Massachusetts auto market is currently on life support as so many companies have left. I may be wrong, but there may no longer be a national company presence left in Massachusetts selling auto coverage. Florida’s homeowners market is similarly in dire straits and its long-run outlook is not too good.
So is it surprising that Big Box stores (Walmart, Lowes, and Target according to this Chicago Tribune article) would cancel plans to enter the city’s market (or to actually leave the market) to avoid a significant increase in the city's minimum wage? Just think about the value of those lost jobs and the correlated destruction of property values this will cause in Chicago. In this case we often talk about the cost of increasing the minimum wage cost as being born by the unemployed (in terms of higher unemployment), but we also have the loss of the value of being able to shop at a nearby big box, as well as the loss of economic development arising near these stores.
via Lynne Kiesling at the Knowledge Problem.