Saturday, October 15, 2011

Government is the biggest job killer - John Stossel

I guess Obama doesn't know that the Transcontinental Railroad was a Solyndra-like Big Government scandal. The railroad didn't make economic sense at the time, so the government subsidized construction and gave the companies huge quantities of the best land on the continent.

As we should expect, without market discipline -- profit and loss -- contractors ripped off the taxpayers. After all, if you get paid by the amount of track you lay, you'll lay more track than necessary.

The Union Pacific and Northern Pacific -- all those rail lines we learned about in history class -- milked the taxpayer and then went broke.

One line worked. The Great Northern never went bankrupt. It was the railroad that got no subsidies.

Posted via email from The Blue Pelican

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