The Christian Science Monitor (I'll repeat myself: one of the best sources of news in the US) asks the question: If Gov. Scott Walker Prevails will Wisconsin look more like the South? and discusses the "southern strategy" of economic development: low services resulting in low taxes that make the region attractive to businesses and job creation. The article does correctly point to a migration of people from northern & eastern areas to the south and west in pursuit of jobs. But I think the article misses a key factor. This strategy works because the educated american worker is highly mobile and can follow the jobs south. Why invest in local education when you can just import brains for other areas that do?
I noticed this effect first hand in California. We hired a lot of people, but virtually none of them were the product of the by then poor quality CA public schools. This was contrasted with the senior management of the company which included a number of native Californians who had been educated in the 60's and 70's when CA public schools were considered the nations best.
In essence job growth in the south and west of the US is subsidized by the taxpayers in the north and east that provide the educational infrastruct.