Giving Away What Isn't Yours

We all love to make friends, and giving gifts is a great way to do it.  What could be better than making friends by giving away expensive gifts, and then getting someone else to pay for them?

That's exactly what the Minnesota legislature is doing this session.  (and you wondered why anyone would want to be a legislator!)

Elections have consequences, and the citizens of Minnesota chose these legislators in Nov, 2012.  Whether they knew it or not, the legislation they are pushing should not come as a surprise.

This legislature has indulged in a long list of bailouts, giveaways and mandates.  The favored, politically connected activists get the benefits, and the citizens of Minnesota have to do the extra work and/or get stuck with the bill.

I'm not talking about the tax hikes, though they are a good example. I'm talking about where that money goes, and how that spending is described.  Think about the rhetoric - the legislature is "investing" in education.  The legislature is "providing health care".  The legislature is "providing" this service, or that service.

Imagine Larry, who has a next door neighbor Joe, who promises to plow the snow in Larry's driveway, Joe then forces a different neighbor, Bob, to pay for it.  Should Larry thank Joe for doing this, or Bob?  How do you suppose Bob feels about it?  Yet, this is exactly what we have come to in the Minnesota legislature.

In theory, we send representatives to St. Paul to decide what we will do together, as a state, sharing the burdens, and doing those things that we cannot do as individuals.  That arrangement requires us to limit those things done by the state to those things that we really can't do ourselves, and requires sharing the cost, but that's neither how it works, nor even how it is portrayed.

The way it works is that those who are politically connected, and/or have public approval get what they want - Vikings, Mayo, Unions, mortgage holders, well organized pressure groups.  Those who are not politically connected, or who do not have public approval pay the bill - "the wealthy", smokers, corporations, the politically unorganized.

It's bad enough that some of these provisions get proposed.  I expect that.  What shocks me is that even when it is described in these stark termsno one seems to care.  When Larry gets the benefit, Bob pays the bill, and Joe (the politician) gets the credit, I would expect Minnesotans to recoil, but they don't.  Many Minnesotans have been convinced that Bob has too much money, that Larry "deserves" the benefits, and Joe is some sort of hero.  This is not right.  It is two wolves and a lamb deciding what's for dinner.

Examples of this sort of behavior abound. The giveaways this session include bailouts of pensions.  The retirees get bailed out, and people who buy insurance pay the bill.  Giveaways to unions - Unions get to unionize small businesses, against the wishes of the businesses (also here), and both taxpayers, and day care customers pay the bill.  The Vikings owners got $350 million (at least) dollars, and despite promises made, it looks like every taxpayer will pay the bill.  Now well-heeled Mayo wants to expand in Rochester, and tax money to the tune of $500 million is provided.  Taxpayers get to pay.  

Another class of third-party giveaway is even worse.  This is where the legislature demands that some benefit be provided, and the one providing the benefit is forced to pay the bill.  I include in this class laws about mandatory benefits, such as insurance policies, and employers forced to provide time off or certain fringe benefits.  These are bad enough as simple third party charity where the employer is forced to provide a benefit, and the politician claims credit.  These are often worse, because they actually do more damage, because sometimes when the costs are added up, it is no longer economical to provide a job at all, or the insurance company can no longer make a profit.  The result? Rather than getting the benefit, the benificiary loses a job, or an insurance company leaves the state, or the premiums on the "enhanced" policies are raised out of the reach of the buyer.  Joe tries to force Bob to plow the driveway, but Bob moves to Florida.  Note that Joe never offers to plow the driveway himself.

This works well for politicians. Activists get what they want.  Politicians get votes.  Everyone else bears the cost.  Taxpayers and the Rule of Law are the losers.

There is no virtue in giving away what's not yours to give.  There is no honor in accepting such gifts, much less agitating for them.  Let's stop fooling ourselves.

We are now in the final 8 hours of the session.  I am hoping that the last few spending and tax bills, which must be passed, will get attention, and giving gifts that are not the legislature's to give, will stop, at least for this session.