Its illegal to boycott israel in some states in America but legal to boycott America in America. Makes you think
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Yes, it is an expansion of state power. It's giving the state the ability to weigh ideology in its contracting. Its contracting can be thought of as a "necessary evil" in order for there to not be anarchy. It's weighing of ideology cannot.
The contracting is a necessary good, not a necessary evil. The spending of government dollars is the necessary evil.