Tuesday, November 25, 2014

Crony Capitalism/Crony Socialism, Corporate Welfare and the Very Visible Hand of Politics

Upon the next occasion in which local politicos bestow corporate welfare, disguised as “economic development“, upon some firm wanting to relocate to the locale or threatening to leave the locale, one would be well served to consider the following regarding the accompanying “economic impact study” (guess) that outlines all the wonderful things that will happen when such corporate welfare is bestowed.

Yes, that rosy picture (guess) that comes in tandem with the corporate welfare handout:

“The Government spenders forget that they are taking the money from A in order to pay it to B. Or rather, they know this very well; but while they dilate upon all the benefits of the process to B, and all the wonderful things he will have which he would not have had if the money had not been transferred to him, they forget the effects of the transaction on A. B is seen, A is forgotten.” - Henry Hazlitt