Business Subsidy and “Making” Jobs: The public is calling for the government to ‘make jobs’ at an unprecedented rate. Asking government to borrow more money and spend it on ‘works projects’ expands the already exploding deficit. Decades from now economists will debate whether the Trillions of Dollars spent on bank bail-outs, car company take-overs, and artificially low interest rates were necessary to save the nation’s economy from the natural implications of unwise lending practices initially designed to ‘stimulate’ construction jobs. Ethanol from corn has been scientifically demonstrated to be counter-productive yet we subsidize the plants producing it. Crop producing land receives significant reductions in property tax, which is a substantial portion of the commercial tax base from which rural citizens are expected to pay for urban style education—in essence subsidizing cheap food for urban residents. Rural taxes are collected and spent on urban mass transit to subsidize urban commuters. Construction projects are subsidized by artificially high wage rates. The government hiring additional public safety, education, and maintenance workers does not create a sustainable economy of scale. Quite the contrary, it does less with more.
4) Do you support the elimination of all business subsidy? Including the subsidy for corn, milk, ethanol, farm property tax, mass transit, construction projects, public service wages, etc. This includes stopping the up-coming ‘make jobs’ projects likely to be part of the next round of budget talks.
| Benoit: Yes I support the elimination of all business subsidies. We are at the point economically that if these programs and businesses are not sustainable on their own, then the government has no business in keeping them afloat or solvent. Subsidies are part of the reason our state and nation are at the brink of being insolvent. There should be no more sacred cows when looking at cutting spending including subsidies. | Newman: Yes. It is not the role of government to artificially assist one group of business and not others. I would rather let the market determine whether a business is viable. Remember Reagan’s sarcasm; “if it moves tax it. If it stops moving subsidize it”. |
| Mahlstedt: Yes. I cannot think of a good business subsidy. Business should bear its own weight. This includes stopping the up-coming ‘make jobs’ projects likely to be part of the next round of budget talks. The trick is how to, and how fast for each and every item?? NO make jobs! Quit “cold turkey” is preferable, but not realistic without much chaos. | Wilson: We need to look at the entire scope and value of a subsidy. Anyone who would rule out all subsidies is not looking at the greater good of some projects. |
Tags: H Kimball, Hal Kimball, MN Senate 18, Scott Newman