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| Nov 04, 2009 4:38 pm |
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re: re: re: re: re: re: Scary Treaty On Global Warming |
Thomas Holford
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John Stephen Veitch sayeth:
> The problem is that if the government is seen to be a limitless source of capital, and willing to subsidise the business, it become impossible to exercise proper control, and also impossible to kill the out of control entity. That is something to worry about.
EXACTLY!
Privately owned businesses operate, ideally, under the discipline of "profit and loss".
If a business cannot find the formula to profitability based on fulfilling customer needs and controlling costs, then the grim reaper of bankruptcy puts the business out of its misery and gives other entrepreneurs an opportunity to succeed.
Government run businesses inevitably become zombies. Even if they loose the ability to satisfy needs effectively and control costs, politicians will keep them alive with transfusions of taxpayer money.
A year or so ago, American taxpayers learned that there were businesses that were, supposedly, "too big to fail". This was deemed by politicians to be justification for transfusions of tax money and creating our own All American business zombies.
Based on the polls and the most recent special election outcomes, it looks like voters are developing a healthy skepticism about businesses "too big to fail", and the witch doctors who create them.
T. HolfordPrivate Reply to Thomas Holford (new win) |
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