Posted on 10/11/2010 10:20:08 AM PDT by MichCapCon
The headline of a story in today's Detroit Free Press characterizes Gov. Jennifer Granholm's understanding of the state film production subsidies: "Goal of film tax credit is jobs, not more revenue."
There's a story from the 1960s about the late economist Milton Friedman visiting a large public works project in a third world country that was funded by U.S. foreign aid. Given the substantial investment, the famous economist was surprised to see thousands of men with shovels moving dirt one spadeful at a time. He asked his host, "Why don't they use bulldozers?"
"It creates more employment this way," came the response.
"Ah, it's a jobs program," said Friedman, who had imagined the taxpayer dollars were being provided to improve productivity and living standards.
One suspects that the great man's host was surprised by his follow-up question:
"Then why not give them spoons instead of shovels?"
~~~~~~~
Perhaps the economics courses given to Harvard law students don't explain that any project with a negative return on investment is by definition an unsustainable loser.
(Excerpt) Read more at michigancapitolconfidential.com ...
MI ping
Why not just post it here?
Milton Friedman, übermensch
And his host replied, "Hey! Did you graduate from the Ronald McDonald School of Economics, too?"
There's a story from the 1960s about the late economist Milton Friedman visiting a large public works project in a third world country that was funded by U.S. foreign aid. Given the substantial investment, the famous economist was surprised to see thousands of men with shovels moving dirt one spadeful at a time. He asked his host, "Why don't they use bulldozers?"
"It creates more employment this way," came the response.
"Ah, it's a jobs program," said Friedman, who had imagined the taxpayer dollars were being provided to improve productivity and living standards...
"Then why not give them spoons instead of shovels?"
Shovels are all that’re necessary; our civil servants insist on ‘spoons’.
In other words, she admits that low taxation leads to economic growth. Her evil nature is to want to dictatorially choose what aspects of the economy she allows to grow.
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