Wednesday, July 30, 2014
PLACERVILLE, CALIFORNIA
99 CENTS

Crystal ball gazers?

By
From page A5 | February 24, 2014 |

EDITOR:

The Mountain Democrat recently reported that the Board of Supervisors adopted a new “economic development incentive policy” so “businesses that can provide significant numbers of good-paying jobs” can be attracted to EDC.

This policy is ill advised. Politicians can’t foresee the future and will likely shower taxpayer money on sketchy business ideas such as Solyndra. Entrepreneurs, not politicians, developed Silicon Valley. Political leaders have a poor track record of picking the winners. Do politicians know what “Agile Manufacturing” will look like in five years? This is a concept, not a well-defined business opportunity.

Japan’s success in the 1980s was falsely attributed to the Ministry of International Trade and Industry, its agency for targeting preferred businesses. MITI created an environment of crony capitalism that has choked the country since 1991. U.S. economic growth/person was 50 percent higher than Japan’s from 1990-2010, according to the USDA.

Argentina was the world’s fastest growing economy before WWI. Crony capitalism has destroyed the economy over the last 100 years. Argentina is now one of the “sick” countries of South America. It’s time to “Cry for Argentina.”

The centerpiece of failed central planning policy was the Soviet Union. I had the privilege of spending a day with an economics professor from Moldova State University in the Republic of Moldova, a small country in Eastern Europe. He described how central planning destroyed the Soviet economy. Moldova produced electronic components for the Soviet military that were years behind the capability of the West.

Politicians favor “economic development” policies because they fear they will lose jobs to communities willing to dole out favors to the selected few. A 2004 paper in the American Planning Association Journal summarized 40 studies that showed that targeted economic development incentives across the United States have failed to deliver favorable results.

Free markets and unfettered entrepreneurs have showered abundance on our country and lifted more people out of poverty around the world than any other economic system in history. I urge the BOS to create an environment where all businesses can succeed rather than pursue failed policies that target favored businesses. We need critical government services but politicians picking business winners and losers serves the politically well connected at the expense of taxpayers.

DARWIN THRONE
El Dorado Hills

Comments

comments

Letters to the Editor

.

News

 
District 2 candidate statements tell of goals

By Dawn Hodson | From Page: A1

Sand Fire nears containment: 66 structures destroyed

By Cole Mayer | From Page: A1 | Gallery

 
Tails wagging over dog park approval

By Julie Samrick | From Page: A3

Quarter-acre fire in Kelsey

By Rebecca Murphy | From Page: A3

 
Schedule for Highway 50 blasting closures

By News Release | From Page: A3

.

Opinion

My Turn: Privatization of public services

By Mark Belden | From Page: A4

 
Policy book

By Mountain Democrat | From Page: A4

 
.

Letters

Private property gets no respect

By Letters to the Editor | From Page: A5, 1 Comment

 
GDPUD management report

By Letters to the Editor | From Page: A5

District 2 supervisorial special election

By Letters to the Editor | From Page: A5, 3 Comments

 
Piano replaced

By Letters to the Editor | From Page: A5

Comments sign-in policy

By Letters to the Editor | From Page: A5, 1 Comment

 
Save the Guinea Worm

By Letters to the Editor | From Page: A5, 1 Comment

Large bangs

By Letters to the Editor | From Page: A5, 2 Comments

 
.

Sports

Taz pull through for SSL trophy

By Patty Pope | From Page: A8

 
Ex-Bruin lends a helping hand

By Steven Shaff | From Page: A8 | Gallery

Sierra Sharks finish middle of the pack

By Democrat Staff | From Page: A8

 
Roundup: July 29, 2014

By Democrat Staff | From Page: A8

.

Prospecting

Nuns discover a pleasant place

By Lexi Boeger | From Page: B1 | Gallery

 
Bargains can be found everywhere

By Democrat Staff | From Page: B2 | Gallery

At a glance: Game time

By Mimi Escabar | From Page: B2

 
Barbecue dinner to benefit Blue Star Moms

By Mount Aukum Winery | From Page: B2

Stagecoach story takes riders on a trip

By Wendy Schultz | From Page: B3

 
Help needed to make cool ties

By Sew 4 | From Page: B3

Stroke and osteoporosis screenings planned

By Life Line Screening | From Page: B3

 
Gold Rush Days activities cancelled this year

By Sacramento Convention And Visitors Center | From Page: B4

Master Food Preservers: Tomato time

By Monique Wilber | From Page: B4

 
Build an author platform at the Library

By El Dorado | From Page: B5

 
Sacramento area museums offer summer fun

By Sacramento Association Of Museums | From Page: B5

.

Essentials

Weather stats 7-29-14

By Michael Raffety | From Page: A2

 
Building permits 6/2-6/2014

By Michael Raffety | From Page: A2Comments are off for this post

Crime Log: July 17

By Cole Mayer | From Page: A2

 
.

Obituaries

Merlyn Wilbur Adams

By Contributor | From Page: A2

 
Lisa Oliver Rose

By Contributor | From Page: A2

Wallace Murrel Thomas

By Contributor | From Page: A2

 
.

Real Estate

.

Comics

.

Women’s Health

Love the skin you’re in

By Noel Stack | From Page: WH4

Dump stress and improve your health, productivity

By Wendy Schultz | From Page: WH7Comments are off for this post

Women’s Health Expo

By Marshall Medical | From Page: WH8

Find the confidence you need to fight back

By Special to the Democrat | From Page: WH12

Our choices directly affect our health

By Special to the Democrat | From Page: WH14

They’re NOT your mother’s hearing devices!

By Marshall Medical | From Page: WH17