Subject:
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Re: Is it ~OK~ for government to subsidise profit making industry?
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Newsgroups:
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lugnet.off-topic.debate
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Date:
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Thu, 21 Jun 2001 15:53:53 GMT
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Viewed:
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259 times
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In lugnet.off-topic.debate, Duane Hess writes:
> In lugnet.off-topic.debate, Scott Arthur writes:
> > Occasionally, I am in favour of government intervention in the employment
> > market. Despite that, when I read the story below, I thought this was the
> > one area where companies and individuals did not need handouts / subsidies.
> > Can it really be ~OK~ for government to subsidise profit making industry(?)
> > in this way?
> >
> > The Story:
> > California tells jobless 'Go east' and pays for the journey for relocation
> > In the Depression years of the 30s, tens of thousands of unemployed left the
> > Dust Bowl of America in Oklahoma and its neighbouring states and headed west
> > for California in search of work, their plight captured by John Steinbeck in
> > The Grapes of Wrath and by the haunting photographs of Dorothea Lange.
> >
> > But now the impoverished unemployed in California are heading east -
> > encouraged by a controversial scheme that gives people on welfare a one-way
> > ticket to leave their homes and look for jobs elsewhere.
> >
> > The rest is here:
> > http://www.guardian.co.uk/Archive/Article/0,4273,4206891,00.html
>
> My hunch would be that the State is trying to protect it's own interests.
> It's probably cheaper to move the welfare recipient to another location with
> an open job market than try to find them a job in an area with a tight job
> market, and supporting them the whole time.
>
> I don't necessarily agree with it, but it does make sense.
I agree with you. Like you say, it does make some sense. If there were jobs
in that state it would make more sense (to me) to re-train them rather than
export them. However, if you read the whole text, it is clear that they are
moving from where there are no/little jobs to where there are more jobs.
From the tax-payers perspective, I would worry that all those on welfare who
want a job are being exported, and only the hardcore will be left. Further,
I still think the companies involved should at least pay a little of the cost.
Scott A
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