Saturday, February 03, 2018

Taxing Americans to Pay Chinese Communists to Hire Some of Us

Government cannot, on the net, "create jobs". At its best it can only provide optimal conditions for those in the private sector to create jobs secure in the knowledge that no one, including the state itself, will loot the wealth that they generate by doing so. The other thing government can do is take capital from a large area and dump it in a small one, then loudly point to the jobs created where the capital was dumped while ignoring the job loss and economic drag produced in the larger area which was robbed of the capital. This happens a lot. The politicians who go around talking about what they will do to "create jobs" are either ignorant of basic economics or disingenuous. Many are both.

I was against corporate welfare when Mike Beebe did it with Big River "Steal" and the Windstream Fiasco. I was against it when Barack Obama did it with the Solyndra Scam, and I am also against it when Governor Asa Hutchinson does it on behalf of Chinese Communists/Cronies. If these projects were compelling ideas, someone in the private sector would do them with private capital and without looting the taxpayers. The taxpayer costs of the Shandong Sun paper mill proposed in Clark County are outrageous. These global companies get states to bid against each other and the politician who gets the project is the one who overbid the most. And believe me there is a lot of over-bidding going on because they are not using their own money, they are using taxpayer money to buy themselves publicity for "creating jobs".

There is no net economic sense, and less justice, in taxing the owner of your local hardware store so that the state can spend millions to lure Lowe's in to open a store that puts him out of business. Our economy is being grossly distorted towards giant corporations and away from small business by these practices. All the existing small businesses are taxed so that a few high-profile giants can get subsidized. If you were thinking of starting a small business, would you choose Arkansas? With these misguided policies businesses will not want to come here unless they are among the privileged few with taxpayer subsidies. Everyone else pays the subsidies. You are either feasting at the table or you are on the menu. It is sick, it is immoral, and it is destructive.

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