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Tuesday, August 18, 2009
Unintended consequences of government
Unintended consequences of government
"the economic role of government is to create the conditions whereby businesses can compete freely and openly.
This may sound benevolent at first glance, but isn't legislation that just singles out new 'businesses' an assault on every existing small business?
Wouldn't the unintended consequence of this legislation be to unfairly penalize existing, struggling small businesses?"
There will be a large group of Republicans hoping to replace Con. Pete Hoekstra next year.
Muskegon's Bill Cooper is in that group and has an interesting take on government grants or legislation that targets specific companies ("oh yeah, free money") and leaves the rest out in the cold.
It's a good article from one of Muskegon's more successful entrepreneurs.
My additional observation is that when companies see that their competitive advantage is best improved by political connections and contributions rather than their own innovation, their creative capital will shift to influencing political decisions instead of focusing on more competitive products and services.
In other words, if you want more tainted money flowing to more ethically challenged politicians (of any party), give the politicians MORE power in choosing "winners" or "losers" in Michigan businesses.
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