One of government’s primary undertakings is transferring wealth, frequently from taxpayers to politically favored corporations. Sometimes these transfers are rightly called corporate welfare, but more frequently they are disguised with terms such as stimulus, bailout, or infrastructure investment. Government programs of this kind, whether financed with current taxpayer dollars, deficit spending, or promised via loan guarantee, divert resources from higher-value uses and reward firms that have invested in special interest lobbying rather than superior products and services. Subsidizing and bailing out private firms is a negative-sum exercise that destroys wealth and prevents the efficient redeployment of resources throughout the economy.
Bill targets ag department slush fund worth billions
The House Appropriations agriculture subcommittee favorably reported its spending bill along party lines Thursday. The bill’s next stop is the full House Appropriations…
Making the Perfect the Enemy of the Good: Everything-Bagel Public Policy
Thanks to Caleb Watney of the Institute for Progress for recommending the great New York Times column by Ezra Klein about the red…
Blue State Bailouts on the Horizon?
Whenever we see risky and poorly thought-out ventures in the business world, the negative consequences of those ideas will usually be limited to the shareholders…