Perverse incentives are another of those things one must hold elective office not to understand. In the news today is an update on Jackson County getting left holding the bag after Metrostat Communications failed to stay in business after accepting an economic development incentive from the county. Now, county leadership is wondering if maybe they couldn’t use the collateral to get into the internet business themselves.
To restate the matter. Government offers businesses money. Businesses that would rather take a tax-subsidized dole than work their tails off and satisfy market demand to be profitable are not functioning with a sustainable model. In other words, people in government must surely suspect the odds of a business that does not exercise fundamental principles for turning a profit going under are pretty high. When they offer them a little money to feed their appetite for destruction, are they totally ignorant to the prospect of swooping down in an act of corporate piracy to buy their business on the cheap?
