Friday, December 23, 2005

Subsidies are Corruption

Subsidies are more than an issue. They're a serious issue for their own countries because of what they entail. Oh, if only we got rid of the ignorant wing, it might be easier...

But sadly, the political system, relying upon donations, will need to offer something in return. Sounds a lot like corruption to me. Lobby the politicians, offer them a bribe, get a favour in return. I personally detest lobby groups for this reason.

Subsidies serve *no purpose* outside of political gain. The only people who gain from it are politicians and their cronies. If we look at the world on an international scale, you see that there's no gain overall at all. Some resources move from Country A to Country B, the subsidizing nation. It would have been more efficient for the world and mankind for the resources to be produced in Country A, but due to cynical political gain, this is not to be.

It really should be easy to sell them off to the population. Once they realize there really are no "local" economies, but a single large one, with artificial ones created by Governments, they should soon accept that buying from their own country will not benefit them all (indeed they should be worse off as comparative advantage is lessened). But the big reason is what the signal is. "Your business is not as important to this country's economic growth as this business here." So if you're not a business that can jostle up a big lobby growth, we're not interested in you (this in turn creates inefficiencies, through deadweight loss in the time lobbying instead of producing). Nonsubsidized people and businesses should be outraged. But no, they're lulled into this "nationalistic" dream.

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