If business is challenging when entrepreneurs make decisions for sound business reasons, it’s doomed when politicians become involved, because they make decisions for political reasons. Politicians like to pay off big campaign contributors by steering government contracts their way, regardless of how dubious the campaign contributors might be as business executives.For one thing, they are sad attempts to prove their bad economic theories, for another:
politicians expect that those who receive government funding will help their re-election campaigns. No surprise that many businesses have chief executives best known for their ability to find a place at the public trough, rather than boosting sales in free markets.Very simply, to quote Iowahawk (after a fashion,) if you don’t want to be drugged and forcibly sodimized in the van, don’t take the candy.
Government attempts to pick winners are most likely to increase the amount of money lost betting on losers. This is because with the power to tax, subsidize and mandate, politicians are able to pour money into unprofitable projects that private investors would never touch voluntarily.
Saturday, October 29, 2011
Why is it that Leftists think that Government should be in the Venture Capital Business?
Posted by Joe at 16:09