Sunday, January 24, 2010

Micro Managing State Development

The Arizona Republic Sunday January 24, 2010, http://www.azcentral.com/arizonarepublic/opinions/arizona2020/visiondex.html carries a series of opinions about how Arizona should develop. Most of the suggestions are micro managing or "top down" central planning. Instead of simply asking to cut taxes and government spending and allow the market to determine who should come to Arizona and how the state will develop, each "opinion maker" has an idea or two of how to create high paying jobs and turn Phoenix into an Eastern type city. I suspect these people would like to create 5 year plans that would direct resources to the uses desired by these people and ensure that only some types of jobs are allowed in state?

What these people don't seem to realize is that their five year plans would be as successful as were the Soviet Union's five year plans.

People are exiting California in droves. The people leaving want a better business environment in which to work or a better tax situation. They are running to Texas and Utah because these states have enhanced the business environment. It is not because these states have micromanaged their states; it is surely not because these states have directed resources to only certain uses.

The Republic has to give up on its quest to turn Phoenix into New York City. That is not why people came to Arizona. That is why people are leaving NYC as fast as they are leaving California.

Arizona does not need to spend more on public education and higher education. It needs to get the state government out of the business of managing the economy and providing an accelerating number of government services. It needs to allow education to be privatized just as it needs to get out of the real estate business and every other type of business. Government's role is simply to protect private property rights. Let's get Arizona to do just that.

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