Is there a country somewhere that has a free market?

I’m not trying to be political.  I’m just minding my own business watching a video podcast when suddenly it is shoved in my face:

Analysts have said that Dell could face several obstacles to selling or outsourcing its plants, including incentive deals with local and state governments in the United States. Absorbing higher U.S. labor costs also could be a disincentive to Asian manufacturers.

It is not clear how the sale or outsourcing of Dell’s Forsyth plant would affect the $37 million in local incentives and up to $268 million in state incentives that it is eligible to receive.

Deborah Barnes, a spokeswoman for the N.C. Department of Commerce, said it is possible that the state incentives for Dell could be transferred to the new owner or operator of the Forsyth plant.

Those incentives, which come from the state Job Development Investment Grant (JDIG) program, are paid to the company that employs the workers, Barnes said. Dell has received about $1.5 million from that program to date. Dell also has received more than $2 million from the N.C. Revenue Department and more than $80,000 from the William S. Lee Act.

She said that a new company would have to meet the same incentive standards as Dell — minimum levels of full-time employees, and salary and benefit requirements.

Why are we arguing over corporate tax cuts in this election when we have loads of corporate welfare programs?  We tax people to support corporations to pay people so they can be taxed to support corporations.  Are we insane?

One thought on “Is there a country somewhere that has a free market?

  1. David A Booth

    Mark,

    1. Yes, we are insane. Our current tax system is neither designed to raise revenues nor to maximize economic growth. Our tax system is designed to shift power to politicians.

    2. Hong Kong used to have a free market. I don’t know how much of this has been destroyed since it has been reintegrated into mainland China. One of the marvels of the three decades following WWII was how Hong Kong went from a relatively poor country to one with among the highest standards of living in the world. The long time British governor even refused to let the government collect virtually any statistics. His rationale? As soon as governments collect statistics they start taxing, regulating, and subsidizing to change the results of free markets. Given the extraordinary growth of Hong Kong with its free market economy – maybe even America might try a free market some day.

    David

    Reply

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