"Pork, pelicans and Louisiana"


Louisiana demands money far above what is offered
Newt Gingrich and Veronique de Rugy write a pretty good analysis of the Louisiana aid demands.

While we all feel for Louisiana's residents, there are limits to what American taxpayers can — and should — be asked to contribute on top of their already large tax bill. More worrisome, too much federal largesse can have negative consequences on behavior. What are the odds, for instance, of more responsible behavior by state and local officials when the federal government picks up all costs? And will private individuals and businesses make sound decisions — purchasing insurance to cover risks, for example — when Uncle Sam bails out poor choices?

Moreover, there are macroeconomic issues. A $250 billion spending package necessarily means $250 billion of money no longer available for private-sector activity. Research from the academic community has confirmed the adverse impact of government spending on economic performance. Even traditionally left-wing international bureaucracies, such as the European Commission, have published research confirming that larger levels of government are associated with weaker economic growth.

I think my favorite ironic bit is increasing the Army Corps of Engineers annual budget tenfold after initially blaming them for the levee failure.

— NeoWayland

Posted: Tue - October 18, 2005 at 05:11 AM  Tag


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