Tuesday, 22 September 2009

Economically Illterate Metro Council

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Sometimes, I wish we could force people who want to run for political office to pass a basic economics test before they are allowed to enter. Then we wouldn't get the stupid resolutions like the one encouraging the city to buy American.

The Louisville Metro Council will vote on a nonbinding resolution Tuesday night that “encourages” the city to use its federal stimulus money only on purchases of goods and services that are American made.

Councilman Rick Blackwell, D-12th District, said the goal is to ensure, as much as possible, that the stimulus money is being used to benefit American workers......
Jim King, D-10th, a member of the council's Labor and Economic Development Committee, said stimulus money being spent on American-made products has a “multiplier effect,” meaning that it helps the contractor and companies that do business with the contractor.

“It makes sense to me because it's important to keep the money in the U.S.,” King said.

This is ridiculous. While such a resolution may benefit people who are doing work for the city, it totally screws the taxpayer. Instead of getting goods for the lowest possible price, the tax payer is forced to subsidize American companies by accepting fewer services for their tax dollar. How is that a good deal for the taxpayers?

This is before we even talk about the protectionism being espoused by Jim King. Earth to Mr. King: protectionism doesn't work. All it does is cause other countries to NOT buy our goods. So while you are helping some "American" companies you are hurting other American companies who are trying to sell their goods overseas.

Neither of these imbeciles have any business being in elected office. They don't understand the first thing about basic economic principles. How the heck are they going to decide what's best for the city when what they think is best is actually detrimental? Sigh.