Matthew Mitchell, Wisconsin, Lars Larson discussed on Lars Larson
Will create economic development that is. Worth it. Now the way it interacts with the economics is interesting because economists are are pretty unified in in believing both in economic theory ended now we've got about one hundred papers that have looked at this. That is never it's not worth it. When you take private property, and you you take a public resources like taxpayer dollars or private resources like property, and you handed over to a private firm. You're actually not increasing the size of the pie. You're not benefiting the broader community. So how do we fix this situation? And is there a fix? I mean, other than is there a way that say either the congress, or in this case, the Wisconsin legislature could say we need to fix this problem. We need to set. It is right as it can be said and make these people whole from our blunder with Foxconn. Well, I think one of the first things that should be done is just states need need, this sort of take the Hippocratic oath do no harm. And that is to realize that targeted subsidies are a path to prosperity especially targeted subsidies, where private property is taken. And, you know, unfortunately, in a lot of ways the policymakers here are just following the public because the public seems is has has for quite a while thought that targeted subsidies work. The evidence is just piling up that they don't and they come at a real opportunity costs in the case of Wisconsin. For that stat three billion dollars subsidy. It's now actually closer to four billion dollars that the state handed to one and only one company it could have reduced its corporate income tax rate by twenty one percent for sixteen thousand so. And we know of course, that's that. It's new firms that are the source of dynamism and gross. How many fulltime employees equivalents, do you think those sixteen thousand firms might have been able to create not to mention, of course, the new firms that would be drawn in because the state with its current corporate income tax rate is among the top ten in the country highest in the country lowered at twenty one percent. It would be the media in the country. It would be huge real cost here. I mean, imagine even if you worked at the smallest company, they're a machine shop and with a twenty one percent cut in income taxes for that company. I know there are people who think well, the owners just going to throw that on his unpack it knowing a lot of cases, the owners going to say why I can buy some new plant and equipment and hire three new machinists or hire somebody else for the front office is secretary or as a salesperson, and you can do those kinds of things and they're all possible. If you let people keep more of their own money instead of trying to chase after you know, these big huge high marquee value projects that is you say don't often pencil out for everybody. Matthew, thanks for the work. You do at the Mercatus center. We very much appreciate your time. Thank you so much for having me. I appreciate it. You bet. That's Matthew Mitchell. Who's the director of the project for the study of American capitalism? Coming up in a moment. Bitcoin was built to take the government out of banking. But now, it looks like the terrorists may be using it exactly for that reason because it takes. Government out of the equation. We'll talk about it with an expert, and I'll get to your phone calls and your emails at eight six six. Hey, LARs, that's eight six six four three nine five to seven seven emails. Go to talk at LARs Larson.