Government meddling in business... a simple illustration

30+ years ago, I owned a small business in a small Midwestern town. The business was small and struggling, but it had promise and I worked hard to make it better and better. I needed more income to survive than my small business provided, so I had a couple other part time jobs to supplement my income.

Almost daily, I would go to the local coffee shop and would enjoy visiting with other small businessmen and local farmers who would join me. We told jokes and talked about life issues and the local economic climate.

Something started to disturb me, however, while attending that daily coffee clutch... the farmer would tell about how the government was paying him to not farm his land and was paying him to not raise livestock... it was governments way of controlling production and supporting the price of commodities. So this farmer, who drove to town in his brand new pickup and talked about his next vacation which he had time and money to take because he didn't need to actually farm yet was paid anyway, had a pretty good thing going!

The problem was, however, that the insurance man wasn't selling the farmer any hail insurance, because the farmer had no crops to insure. The insurance man wasn't subsidized by the government.

The implement dealer wasn't selling the farmer any new farm equipment, because the farmer had no need for any new equipment. The implement dealer wasn't subsidized by the government.

The local plumber and electrician's business was slow, because the farmers who were being paid to not farm didn't need waterlines or electrical lines run to their livestock barns because they were empty. The plumber and electrician weren't subsidized by the government.

The ripple effect of bad news to many businesses because of the government's "help" to the farmer was staggering. When I was young, there were at least three thriving implement dealers in that community... I witnessed them all go out of business.

Call me crazy, but, it seems to me that government ought to stay out of business and let the free market have its way.

One of my part time jobs was as a teller at a local bank. I worked in the drive up window and cashed checks for many folks who would drive through in their new pickup truck with either a 4 wheeler recreational vehicle in the pickup bed or a boat towed behind and with a case of beer sitting on the seat beside them. I would cash their welfare check or their farm subsidy check and think to myself... "What's wrong with this picture?"

It seems to me that government can't 'help' anyone without hurting someone else.

I've observed this lesson repeating itself countless times since those early days ... the recent "cash for clunkers" had a similar effect. The recent bailout of the auto industry, banking industry, and other similar programs has had again, a similar effect. Government needs to get out and stay out of business and let the free market work.