Monday, February 7, 2011

A Hollywood Ending

"Now, studio executives -- like every other known species of rent-seekers -- argue that transferring wealth from average-income taxpayers to wealthy producers, directors, and actors somehow increases jobs on balance.  But critics reply with the point -- so trenchantly expressed by Frederic Bastiat over a century and a half ago in his classic essay 'That Which is Seen, and That Which is Not Seen' -- that subsidizing employment in one sector of the economy lowers employment in other sectors.  After all, to get the funds that subsidize whatever industries the politicians favor, the politicians must confiscate money from taxpayers, who then have less money to employ others (either directly or else indirectly through their purchases).  Subsidies don't create more jobs overall -- they just shift them from one sector of the economy to another."

American Thinker: A Hollywood Ending

No comments: