Wednesday, October 19, 2011

Political Government Subsidies

Some states and especially the Federal government make political efforts by subsidizing some small company payrolls. It’s a stupid populist attempt to show concern for workers at those jobs.

One: Taxpayers must pay for small businesses who are not able to make a go of it. Perhaps inefficiencies but also including barriers placed before them by government being restrictive. Such as business taxes and fees.

Two, the assistance will inevitably be politically dominated. The funds will go to companies preferred by the politicians in office. Graft and corruption is always a consequence.

Three, the whole process amounts to nothing significant. Where will it all end, short of Fed or state government winding up in a failing business?

Leave companies alone in the first place, without abusive taxation and other restrictions and they will tend to do far better on their own. (See the Earl J Weinreb NewsHole® comments.)

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