Obvious results
She knew that no train schedules could be maintained any longer, no promises kept, no contract observed, that regular trains were canceled at a moment’s notice and transformed into emergency specials sent by unexplained orders to unexpected destinations - and that the orders came from Cuffy Meigs, sole judge of emergencies and of the public welfare.
Atlas Shrugged
, P 914
Reading this description, of the results of economy that is not built on rational of profit , I thought that Ayn Rand exaggerated for the sake of the story - to make her point clear. But as years pass and as I read about government’s program that redistribute wealth, regardless of economical justification - the end is always the same:
"Nobody understands it. I don’t understand it," said J. Gregory Greco, a business specialist who works out of the USDA’s Rural Development office in Harrisburg, Pa. "You may find one area of town is eligible and another isn’t. It can be by street: One side is eligible and another is not. I defy you to give the logic of it."
The complete story, not surprising, follows the same pattern. Somehow, and although it is bound to fail, the idea of central management of the economy, a government that will redistribute the nation wealth according to some priorities that aren’t base on profit and one’s self interest. And as always such programs become the victims of the bureaucrats that manage them, and worse the interest groups who know how to exploit them. And these ideas become a conduit of wealth from those who creates it, and that should use it, to those who have the right connections. The results obviously are far from what was originally intended:
All told, the USDA has handed out more than $70 billion in grants, loans and loan guarantees since 2001 as part of its sprawling but little-known Rural Development program. More than half of that money has gone to metropolitan regions or communities within easy commuting distance of a midsize city, including beach resorts and suburban developments, a Washington Post investigation found.
More than three times as much money went to metropolitan areas with populations of 50,000 or more ($30.3 billion) as to poor or shrinking rural counties ($8.6 billion). Recreational or retirement communities alone got $8.8 billion.
Among the recipients were electric companies awarded almost $1 billion in low-interest loans to serve the booming suburbs of Atlanta and Tampa. Beach towns from Cape Cod to New Jersey to Florida collected federal money for water and sewer systems, town halls, and boardwalks. An Internet provider in Houston got $23 million in loans to wire affluent subdivisions, including one that boasts million-dollar houses and an equestrian center.
Tags: Big Government USDA Rural Development program The Free Market Waste
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