|Postponing Payment Does Not Make Lunch Free!|
By giving some companies advantages states may be lowering the ability of others to compete and in the long run, they often lose more jobs than are created in the short term. In Fort Wayne, Indiana years ago the city backed a bond and the loan to build a massive hanger at the airport for an air-freight company named Kitty Hawk. They promised a slew of new jobs when they located their hub in the city, the company is now bankrupt and the jobs are gone. The taxpayers of Fort Wayne are now paying for an empty hanger that they are trying to lease at an aggressively low price. This hurts those private investors and property owners that lease building space as they are now forced to compete against the government to which they are forced to pay taxes.
|Estimates Can Be Very Very Wrong!|
The lesson is that delayed payment should be viewed as sidestepping reality rather than a solution. Short-sighted attempts to sidestep real structural failures and problems often fail. Real problems must be addressed with real solutions not just promises of future action or put off until a later date. Unfortunately not taking the proper steps often causes more problems down the road. This brings to mind the words of Winston Churchill who said, "The era of procrastination, of half-measures, of soothing and baffling expedients, of delays, is coming to a close. In its place we are entering a period of consequences" My point is, we too are entering the dark and dangerous place where we must pay the piper.
Footnote; This post dovetails with many of my recent writings, other related articles may be found in my blog archive, thanks for reading, your comments are encouraged.