On the Fourth of July, because nothing says “Liberty!” like a bigger federal subsidy, the Small Business Administration doubled the ceiling on its guaranteed loans to $10 million, the most it has ever offered.
Sure, the goal of perfect competition for allocative and production efficiency DOESN'T at all mean PROTECTING small, inefficient firms (in fact, the best evidence of a healthy economy is a high rate of business bankruptcy!). But, here's my far superior fix to minimize government intervention in free enterprise. My "modest proposal" (with tongue firmly in cheek) is to combine all business-related Departments and Agencies into one, naming it the BBA (BIG Business Agency), and then slash that budget (so we can "drown it in the bathtub" as Norquist said, but about all gov't), because that part of government displays a total bias in favor of our biggest businesses with the most lobbyists and bought politicians in contracting, subsidizing, most in-house lawyers, and 3 times the monopoly power of the Robber Barons! It's much easier to even the playing field by focusing on the current incestuous kleptocracy entrenched since Reagan got in and ended most workplace, consumer, and environmental protections, gave the richest 4 huge unfunded tax cuts (leading to record income and wealth inequalities), and neutered all antitrust law enforcement (and all the biggest mergers ever)!
I think you just named the practical problem my work is trying to solve mathematically: policy cliffs create distorted behavior. Ramps are better. Curves may be better still.
Sure, the goal of perfect competition for allocative and production efficiency DOESN'T at all mean PROTECTING small, inefficient firms (in fact, the best evidence of a healthy economy is a high rate of business bankruptcy!). But, here's my far superior fix to minimize government intervention in free enterprise. My "modest proposal" (with tongue firmly in cheek) is to combine all business-related Departments and Agencies into one, naming it the BBA (BIG Business Agency), and then slash that budget (so we can "drown it in the bathtub" as Norquist said, but about all gov't), because that part of government displays a total bias in favor of our biggest businesses with the most lobbyists and bought politicians in contracting, subsidizing, most in-house lawyers, and 3 times the monopoly power of the Robber Barons! It's much easier to even the playing field by focusing on the current incestuous kleptocracy entrenched since Reagan got in and ended most workplace, consumer, and environmental protections, gave the richest 4 huge unfunded tax cuts (leading to record income and wealth inequalities), and neutered all antitrust law enforcement (and all the biggest mergers ever)!
I think you just named the practical problem my work is trying to solve mathematically: policy cliffs create distorted behavior. Ramps are better. Curves may be better still.
Thanks. I detest government pretty much in all ways, but it is always interesting to find out new ways of incompetence that I had not known of.
How do you extract the government from these socialist activities. Well stated article.