Merry Christmas to big corporations from you
Montgomery County has just presented ten big corporations with a gift of $1.8 million paid for by you. You’re so generous. It’s not enough that you buy their products, providing them with a profit. You also give them your tax dollars that you could have used to improve your life and the lives of your family members. Instead, you generously sacrificed the well-being of yourself and your family to improve the lives of the rich owners of those corporations.
The Dayton Daily News wants us to believe that the recipients of these grants are creating jobs because of them. It reports, “Ten area businesses received more than $1.8 million in economic development grants this week in exchange for promising to create more than 370 local jobs.” On the contrary, the creation of those jobs has nothing to do with the grants. The intimation that grants promote job creation is propaganda designed to make people believe corporate welfare is in our interest. That’s impossible. You’re more likely to have Santa Claus come down your chimney on Christmas Eve.
It’s impossible for government spending to help the economy because in order to boost the economy in one place with a grant, government must first depress the economy everywhere by taking money out of it via taxes. Economists call this the principle of the seen versus the unseen. We see the benefits of grants, but we cannot see the detrimental effects of taking money out of the economy in the first place. We can’t see the wealth and jobs destroyed or that weren’t created. Plus, government grants are not a one-for-one proposition.
In order for government to dole out $1.8 million in grants, it must confiscate more than $1.8 million out of the economy. Government has to pay the parasitic bureaucrats who seize the money and redistribute it, so the drain on the economy is even worse. But the damage doesn’t stop there. Every recipient of grants kicks back a portion of the grant into the pockets of the politicians who stole it from us and gave it to them. That’s a tremendous amount of waste that can be seen on top of the damage that cannot be seen. Every dime the government spends on so-called economic development programs depresses our economy and makes everybody poorer, except for the recipients of the stolen funds.
All government economic development pseudo-services are scams. They’re covers for stealing our wealth and enriching politicians, bureaucrats and their cronies.
Analyses illustrate the damage of these programs. Economist Gabriel Calzada Álvarez determined that for every green job created by the Spanish government, it destroyed 2.2 jobs in the private sector. This is one of the reasons Spain is on the verge of collapse, but the owners of the green companies got rich. An analysis of President Obama’s stimulus boondoggle reported, “Our benchmark results suggest that the ARRA created/saved approximately 450 thousand state and local government jobs and destroyed/forestalled roughly one million private sector jobs.” That also works out to 2.2 productive jobs destroyed for every parasitic job saved. In another example, Obama’s stimulus boondoggle brought broadband Internet access to rural homes, but at a cost of $349,234 per home. Somebody got filthy rich doing that project. This is why the politicians and plutocrats get richer while the poor and middle class get poorer.
The reality is the recipients of the grants are creating jobs because they believe those jobs will increase profits. They’d create them without the grants. The grants work out to about $4,865 per job. Nobody incurs the cost and risk of hiring a new employee for a one-time grant of $4,865. They hire new employees because they believe those workers will create more wealth for the company than the company pays them. Private investment, innovation and the profit motive create wealth and therefore jobs. Handouts stolen from taxpayers destroy wealth and jobs.
The best thing that can be said about these grants is they aren’t bailouts. They’re not turning dying companies into wealth-destroying zombies. They’re enriching people who are already rich and getting richer in the marketplace so those people will give back to their political patrons, making them rich too.
That’s if the companies are telling the truth. The companies don’t have to do anything to get the grants except make promises. Government grants are rife with fraud. So far, 19 green companies have gone bankrupt after receiving a total of $2.6 billion from Obama, but shenanigans in the process made Obama’s cronies rich anyway.
But it’s not just economic development programs that make us poorer. For the same reasons explained above, every dollar government spends makes us poorer. And it’s not just spending. Because regulations restrict our ability to cooperate to create wealth, every government regulation makes us poorer, too. If politicians really cared about economic development, the only way they could help would be to cut spending, regulations and taxes. The more they cut, the better. But then they couldn’t get rich off of us, so I’m not holding my breath.
The views and opinions expressed in Conspiracy Theorist are the views and/or opinions of the author and do not reflect the views and/or opinions of the Dayton City Paper or Dayton City Media and are published strictly for entertainment purposes only.
Reach DCP freelance writer Mark Luedtke at MarkLuedtke@DaytonCityPaper.com