"Other people, spending other people's money, on other people." - Fourth category of spending, Milton Friedman
Here is a thought experiment: If emergent/spontaneous order created a demand for a performing arts center then a private sector supply would appear.
If the demand by the few, by the politico and their ilk, created a demand for a performing arts center then a taxpayer funded supply would appear.
If a private supply appeared all the financing/funding, construction, risk/uncertainty and on going expense is borne by the private sector.
If a public supply appeared all the financing/funding, construction, risk/uncertainty and on going expense is borne, not by the public sector, rather it is borne by current and future taxpayers.
Private enterprise is financed privately. Public enterprise is funded by tax.
If a private supply fails, then the price of failure falls on the owners, managers, employees and suppliers of the private enterprise.
If a public supply fails, the few, the politico, pays no direct price for failure other than non-reelection while the price of failure falls directly on current and future taxpayers.
When a notional proposition is put forward by the few, for the benefit of the few, political economy identifies the phenomena as a “scheme”. Stated alternatively, rather than being the product of the many through spontaneous/emergent order, it is an artificial product of the few. It is also known within political economy as “unicorn governance”. How so? The scheme’s basic formula is: A + B x (a magical moment occurs) = result X.
The inefficiency of political control of an economy has been demonstrated more often, in more places, and under more varied conditions, than almost anything outside the realm of pure science. - page 166, Thomas Sowell’s 1999 book, The Quest for Cosmic Justice
Sunday, January 31, 2016
Greensboro Preforming Tax Center...err...Arts. Come the Restaurant Tax?
BS Economics, cum laude, Private and Public Sectors, 1979, West Virginia University, Morgantown, WV. Undergraduate Minor in General Insurance. Chartered Life Underwriter (CLU), Huebner School of Economics, American College, 1992, Bryn Mawr, PA. Life Underwriter Training Fellow (LUTCF), 1986, National Association of Life Underwriters, Washington D.C.. Currently enrolled and completed one half of Chartered Property and Casualty Underwriter (CPCU) from the American College. 38 years insurance industry experience.