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>> I think you are being too kind to corporate welfare. Sure, it increases the
>> production of the government-favoured widgets, with the marginal increase
>> being the quantity that no-one wants at the cost of production. Useful? Not by
>> value. And the resources thereby devoted to the production of economically
>> useless widgets are resources denied to the production of things of real
>> value. I'd rather pay $1.10 for some widgets that I was only prepared to pay $1.00 for,
than pay $1.10 for some poverty that I didn't want at all. I realize this analysis is simplistic, and that the side effect of creating
poverty is that you create more leisure (itself an economic good which is
frequently ignored), but consider two identical countries:
- Which taxes and spends $1B/yr on creating extra widgets.
- Which taxes and spends $1B/yr on creating extra poverty.
Which one would you prefer to live in? I suspect you will do an economic analysis to demonstrate they are the same,
but I would still like to see it.
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