Monday, April 25, 2005

Granholm Complaining

Governor Granholm is complaining that her "Jobs Today" and "Jobs Tomorrow" plans aren't sailing through the legislature, as she'd like them to.

Gee, let's think about that. Her plan is to lower the Single Business Tax for the industries that are fleeing Michigan such as manufacturers. So far so good. Ah, but she wants it to be revenue neutral. Therefore the tax is also raised on the industries in Michigan that are actually creating jobs, such as the insurance and financial services industries. Wow, great idea. Tax the growth industries in Michigan more.

In addition, her plan to sell bonds so that bureaucrats can invest the money in startup businesses isn't going so quick. Again, as though bureaucrats are better than the market at investing. She's trying to borrow the state into prosperity.

And a third aspect is for the state to offer low or no interest loans to school districts so that they can build new buildings, again, with the hope that this will increase construction jobs. State borrowing to create jobs doesn't help the economy. It hurts in the long term.

Our governor (and much of the legislature) need to go back to Economics 101. They should start by reading Frederic Bastiat's That Which is Seen and That Which is Not Seen.

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