186. who gets the pie?

August 1, 2009 § Leave a comment

This is worth pondering. How typical is it? Secondary consequences..

In article in [Wednesday’s] International Herald Tribune tells the story of one area in Tennessee that has gotten stimulus money.
"The cash that salvaged a county," says the headline. Perry County, southwest of Nashville, must be one of those places you don’t want to stop when you’re driving across the country. With 25% unemployment and no significant industry, it sounds dreadful – at least from an economic point of view. It might be a nice place to live – if you don’t have to work for a living.
So the county honchos figured the county needed a little stimulus. They managed to lay their hands on cash being passed out by the feds. It doesn’t seem to bother anyone that the money belongs to someone else. Nor does the fact that it is now being frittered away in a bunch of make-work projects that nobody wanted to pay for even when they had some money. Nor that the stimulus-assisted businesses of Perry County now have an unfair advantage over their honest competitors in other parts of the state.
The Armstrong Pie Company, for example, used taxpayers’ money to expand: "New workers [hired with stimulus money] have helped the company triple its pie production and expand its reach through central Tennessee."
A quick question: what happened to the pie companies that lost market share to Armstrong? And another: how is the economy any better off by stimulating one pie company to make more pies at the expense of other pie companies? And a final one: even if total pie consumption goes up – a larger pie! – where’s the benefit?

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You are currently reading 186. who gets the pie? at Reflections on GardenWorld Politics Douglass Carmichael.

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