by Jerry O’Driscoll
That is the title of yesterday’s “Wonderland” column by Daniel Henninger in the Wall Street Journal.
Henninger distinguishes between market entrepreneurs and political entrepreneurs. Market entrepreneurs innovate and create new products. Political entrepreneurs make money by gaming the political system. “We need vision, vitality and commercial moxie. The government is draining it away.”
The real cost of TARP and stimulus is the diversion of resources and talent from creating value into transferring money from one pocket to another. The stimulus bill was a cover for a massive income transfer from the productive to the unproductive classes in society. TARP transferred money from profitable firms and hardworking Americans to profligate bankers.
Market entrepreneurs create products that generate the revenue needed to reproduce themselves and then grow. The political variety creates dependency and the need for new tax revenues to sustain unproductive activities. Markets create wealth and governments transfer it for a fee.