Businesses are fleeing Delaware, and if we don’t move fast, they’re gone for good. This isn’t a warning; it’s a five-alarm crisis.
For decades, Delaware has been corporate America’s command center, the legal bedrock anchoring trillions in global capital. Over 1.8 million companies didn’t choose us for nostalgia or state pride; they came because we forged the gold standard: ironclad corporate law, rock-solid predictability and a system that kept capital strong, safe and thriving. That’s why we’re the First State – not just in name, but in power.
Now, that dominance is under fire.
Tesla bolted. Dropbox walked. Pershing Square packed up. More are eyeing the exits. Capital doesn’t gamble; it calculates. When stability falters, money runs. Delaware’s starting to look shaky.
The breaking point
A $56 billion activist ruling cracked our foundation. One wild decision turned our courts from a trusted pillar into a liability. CEOs and investors saw it. If one in 10 of our 1.8 million businesses bails – 180,000 entities – we’re staring at disaster. Hundreds of millions in revenue vanish. Jobs dry up. Taxes spike. Our leverage fades.
The sharks smell blood. Texas and Nevada aren’t waiting; they’re positioning to steal it all, rewriting laws and cutting deals to grab what Delaware lets slip. Hesitate, and we don’t just lose companies; we lose our economic crown.
SB 21: A power move
Senate Bill 21 isn’t a Band-Aid; it’s a counterstrike. It kills the legal chaos, locks in stability and tells global capital that Delaware is still the only game worth playing. This isn’t about coddling corporations; it’s about keeping Delaware on top. The second state isn’t catching up. The third state isn’t pulling ahead. We stay the financial nucleus Wall Street and Silicon Valley depend on.
Senate Majority Leader Bryan Townsend, D-Newark, is behind this push, but it’s not about one name; it’s about Delaware’s future.
This isn’t theory. I’m an investor, operator and player with skin in this fight. I’ve seen red tape and shaky rules choke capital and send it packing. Businesses have choices: If Delaware gets too costly or unstable, they’re out. No looking back.
The cost of waiting
Delaware didn’t rise by playing it safe. We took the lead. We set the rules. We built the game.
But even the strongest engines fail if ignored. That $56 billion ruling? A fracture in the core. Every exit screams it: Delaware’s not the sure bet it was. Picture Main Street with more empty storefronts than customers. That’s what losing 180,000 businesses brings.
No do-overs
Lose those companies, and the burden hits us – small shops, entrepreneurs, families, workers already stretched thin. Towns quiet down. Schools lose funding. Roads rot. Texas builds glass towers while Vegas rolls out the red carpet for our runaways. They’re not taking a slice; they’re after the whole bakery.
SB 21 isn’t a debate; it’s a stand. We control this, or Texas and Nevada redraw the map. Delaware’s dominance wasn’t handed to us; we earned it. And we can lose it.
Hold the line. This is our shot. SB 21 keeps Delaware the First State, not the Forgotten One.
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Cape Gazette commentaries are written by readers whose occupations, education, community positions or demonstrated focus in particular areas offer an opportunity to expand our readership's understanding or awareness of issues of interest.
Nick Roth is the news editor. He has been with the Cape Gazette since 2012, previously covering town beats in Milton and Lewes. In addition to serving on the editorial board and building pages, Nick is responsible for the weekly Delaware History in Photographs feature and enjoys writing stories about the Cape Region’s history. Prior to the Cape Gazette, Nick worked for the Delmarva Media Group, including the Delaware Wave, Delaware Coast Press and Salisbury Daily Times. He also contributed to The News Journal. Originally from Boyertown, Pa., Nick attended Shippensburg University in central Pennsylvania, graduating in 2007 with a bachelor’s degree in journalism. He’s won several MDDC awards during his career for both writing and photography. In his free time, he enjoys golfing, going to the beach with his family and cheering for Philadelphia sports teams.
