Free Liberal

Coordinating towards higher values

The King Kong of Subsidies

by Paul Jacob

When governments get in the business of business, there's no enormity they won't engage in. Say you want to attract more movie businesses to your country. So, hey, why not! Subsidize a movie or two or three.

After the "Lord of the Rings" success, though -- you know, Peter Jackson's trilogy of films based on Tolkien's trilogy of books -- you might've thought that New Zealand's government would sit back and just wait for more films to be filmed down under. Talk about getting all the publicity they could hope for.

So why give $25 million to Peter Jackson to film "King Kong" there? I don't want to sound anti-art -- or anti-ape, or anti-kiwi. I just can't help but notice that governments that start out wanting to promote this or that, end up by simply taking from poorer people and giving huge wads of money to much, much richer people.

Most arguments for government aid boil down to helping out the people who can't help themselves. Or investing in worthwhile projects that private investors can't or won't.

But in reality, the practice of government aid and investment always ends up with huge sums being wasted on people who are already successful and don't need help.

It's a pity: New Zealanders must endure their high taxes and regulations so that the government can make one of the world's most successful moviemakers that much richer.

Common Sense is published by Americans for Limited Government. Their website can be visited at www.limitedgov.org.