by Tina Grazier
Private industry investment places risk on those private investors who find an idea worthy enough to risk their own personal money. Private investemnt keeps risk off of the backs of taxpayers. In the process good ideas thrive and grow…bad ideas fail.
This is how it works when government is in control:
1. Become enamored with a new idea (example – ethanol)
2. Write legislation that encourages the industry
3. Include in the legisalation a generous subsidy to jumpstart the industry
4.Create tarrifs to protect the industry domestically.
5. The above measures fail to create demand so write legislation mandating ethanol be added to gasoline.
6. Americans now MUST buy the product and distillaries pop up in the midwest.
7. An economic downturn…gas consumption declines
8. Distillories begin to close
9. Distillaries begin asking for a $1 Billion bailout
10. Joke is on Americans…$20 Billion is set aside for “renewable-energy subsidy in the porkulus bill. The process and expense could go on forever.
Government spending for new ideas has just begun…Americans are looking more and more like suckers.
HT – National Review March 9, 2009 print edition.