There must be something in the air today.
On the same day that Dr Steve posted his What is capitalism piece and TAFKAS posted on the regulatory and public policy wisdom of Ross Gittens, TAFKAS will offer a link to another great article by Kevin Williamson from National Review – Capitalism’s Cold War.
But here is Williamson quoting Mercatus scholar Matthew D. Mitchell:
There have now been over 100 peer-reviewed academic studies of targeted subsidies. The overwhelming majority of these fail to find any evidence that subsidies benefit the broader communities that offer them. What does matter is the overall environment. Policymakers who stick to the provision of public goods, keep their taxes low and their regulations reasonable can see their states and cities grow. Those who offer targeted subsidies to high-profile firms like Foxconn and Amazon do nothing to improve the lot of their constituents.
Holden. Ford. Toyota. Lots of people to blame. Any lessons learned?
Perhaps the relevant State Departments of Other Peoples Money Showering might read some of these peer-reviewed academic studies of targeted subsidies before throwing money at another business.
Yet again Williamson hits it out of the park in yet another compulsory read. There is much more in this one that this quote, so read for yourself.