This is one of the reasons those of us who have at least some understanding of supply and demand just roll our eyes (and pack our bags) when statist politicians start waxing about how they are going to “help” the economy. Likely Obama believed this. We know many politicians in California believe this. (Even as companies and Californians move.) At least California has awesome weather to keep people. New York has, well, it has great pizza.
Plus big government intervention into the private economy is how cronies get rich. What’s the point of having a healthy economy if government and its hangers-on don’t get their cut?
(From The Washington Free Beacon)
“One of the main things that businesses care about is having an educated workforce, and in order to do that, we really need to invest in education. The other thing that businesses really care about is infrastructure, and we’ve so divested not only from our New York City subway, but from our roads and our transportation in general,” Nixon said.
“Investment?” No, taxes aren’t investments. They are wealth transfers, and education and infrastructure are two of the most crony vehicles around. It ain’t about the “kids” and good roads. It’s about teacher’s unions and union construction companies getting paid.