Monday, February 27, 2006

Unusual Honesty from Government

Consider the recent, enlightening transition report offered to Governor Corzine on agricultural policy. Here, one finds a rare display of honesty respecting the impacts of the muddle headed policies adopted by the State over the course of the past four years.

Start with the minimum wage. The report notes that "... many farm employers will struggle to cope with the multiple, adverse impacts of these legislated mandates". Say, what? "Adverse impacts" upon employers from a minimum wage increase? Don’t the Jon Shure’s of the world repeatedly ashure us that minimum wage increases have no "adverse impacts"? That they don't cost jobs? That they don't cause businesses to fold?

Reverting to typical liberal-speak, the report recommends a governmental subsidy in order to sustain "agricultural viability". Given the harm done to the farming sector by increases in the minimum wage, the report recommends that the state spend $10-12 million subsidizing the farmers who must pay those increased wages.

This is almost a caricature. Conservatives have long asserted that the Democratic mantra runs: "If it moves, tax it. If it keeps moving, regulate it. If it stops moving, subsidize it." Having adopted a policy which will inevitably drive farmers out of business, the State now urges that these same employers be given a taxpayer subsidy to compensate for the entirely predictable results of a boneheaded law.

Good thing for the farmers that they’re a sympathetic constituency. Where are the millions in subsidies for the restauranteurs and other small businesses adversely affected by increased labor costs?

On another front, the report details the devastating effect on farmers of foolish state (and local) land preservation policies – notably, the Highlands – which strike at the value of farmland, encouraging farmers to git while the gitting is good. Consider the following language:

"It is important, if not essential, that the state administration formulate and communicate a clear and concise theme on property rights and the importance of protecting land values to the future of agriculture. This should become a common framework for all public sector agencies to use when formulating open space and land regulation policies. This theme at its core should reflect the constitutional protection against ‘takings without compensation’..."

"Property rights"? "Constitutional protection against takings without compensation"? Did a REPUBLICAN sneak onto this transition group? What, after all, are "property rights" when broader considerations, like "protecting" land, arise? And was not the entire point of the Highlands Act to effect a "taking" without actually paying for anything?

While the report details the devastating effect that such policies have upon farmers, is the impact really any less significant for others, who see the value of their property essentially destroyed, all in the interests of some alleged societal benefit? If farmers are to be protected against the economic effects of "preservation" efforts – pursuant to which society reaps a benefit, but foists the costs of same upon to a small group of property owners – why should not other property owners as well?

Rare, indeed, is it to find examples of such refreshing honesty, in which government admits that its policies produce devastating effects.

Typically, though, the report gets the solutions wrong. Instead of urging that the foolish, job destroying hike in the minimum wage be repealed FOR EVERYONE, it requests a taxpayer-funded subsidy for sympathetic employers. In effect, it urges that the taxpayers pay the wages of some private employees.

Instead of urging the repeal of property-rights-destroying legislation like the Highlands Law, the report, again, resorts to special pleading for farmers, leaving other landowners without remedy.

But the fact remains: governmental policies destroy jobs and businesses and impose special burdens on small groups. The solution lies in repealing those foolish policies, not providing subsidies to small groups of sympathetic supplicants.

MARDI GRAS TOMORROW!! Join me at the Madison Hotel in Convent Station at 6 PM for a festive evening. EM jptet@optonline.net for the details!!