Monday, June 8, 2009

Unintended Consequences

For every good (or well intentioned) deed there seems to be an unintended consequence. Let me put aside for now my criticism of the focus of government stimulus spending to date and focus instead on some side-effects of it even if it were to work as planned. What happens when the government spends a boat load of our taxpayer dollars supporting companies that probably should fail? Answer: the government weakens the companies that did the right thing and that should survive. Supporting the weakest link creates government supported competition for the companies that did the right thing. Those that did what they should are being punished by government support for the competition. This is one hell of a way to fix an economy in my opinion.

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