Read it and weep, liberals:
Recent research at Harvard Business School began with the premise that as a state’s congressional delegation grew in stature and power in Washington, D.C., local businesses would benefit from the increased federal spending sure to come their way.
It turned out quite the opposite. In fact, professors Lauren Cohen, Joshua Coval, and Christopher Malloy discovered to their surprise that companies experienced lower sales and retrenched by cutting payroll, R&D, and other expenses. Indeed, in the years that followed a congressman’s ascendancy to the chairmanship of a powerful committee, the average firm in his state cut back capital expenditures by roughly 15 percent, according to their working paper…
Easy to figure out – once a politician gains in stature, the corporate interests who raised him to power become complacent. They start to live off their connections in government rather than off of hard work and innovation. Why bother working hard when for a pittance (in comparison) you can just bribe a politician for sweat heart government contracts or tax breaks?
The larger government gets, the worse it gets for everyone for the simple reason that government can be swayed – it can be bribed. After a while, you get the situation we currently have – where Big Government and Big Corporation bribe each other for mutual benefit. The only people suffering in this are, well, the people. We don’t have the free market we need for growth nor do we have a government we can rely on to help us.
Only by breaking down the power of government will we be able to restore a sense of rationality and honesty in both American government and business. The liberal dream of a wise elite using government to ensure the good life for all has proven a nightmare – and it is time we woke up from it.