Tuesday, October 20, 2009

Government Desires

Thinking about what we produce in America, made me realize the nation produces what the government wants the nation to produce. The five industries that receive huge subsidies and are (were) the nation's growing industries are:
-Investment banking
-Professional Sports (Division 1-A college is professional in my book)
-Health Care

Just to list some of the subsidies these industries receive:
-Guaranteed loans from the Federal Reserve
-Professional Sports (When is the last time you heard of an unsubsidized stadium)
-Agriculture (Bob Dole said a farmer can double their income by installing a second mailbox)
-Housing, probably not enough room to list them all, but here are a few: deductions, FNM, FRE, FHA, Federal Reserve Purchases, Tax credits, etc
-Health Care, I read between Medicare, Medicaid, VA, and government employees it is over 50% of all health care spending in the country

The problem is now that all of those industries are oversupplied the government is trying to create demand for their products.

How long can the government choose what the nation creates and create the demand for those products?

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