Comments: Dopey WNJ Letter of the Week

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You are right that it's unfair that you have to pay to support Arnold's retirement.

He is also right that it is unfair that he has to pay to support other people's children.

These two payments do not cancel out.

When things are subsidized they are over-consumed. That is, the spending level is such that the marginal utility is lower than the marginal cost.

In short: subsidies destroy wealth society-wide.

Cross subsidies just do it twice as quickly.

Posted by TJIC at April 20, 2007 09:25 AM

Convenient, isn't it, to forget that your own education was paid for by the aged of your youth.

Posted by jef at April 21, 2007 05:29 PM