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In their fascinating history of government misadventure, Burton and Anita Folsom show why the Obama administration's urge to pick winners and losers in the private sector is doomed to fail.
From the days of George Washington through World War II to today, government investments have failed dismally. They not only drain the Treasury of cash but also impede economic growth, and they hurt the very companies they try to support.
Why does federal aid seem to have a reverse Midas touch? Simply put, federal officials don't have the same abilities or incentives as entrepreneurs. In addition, federal control always produces political control of some kind. What is best for politicians is not often what works in the marketplace. Politicians want to win votes, and they can do so by giving targeted CEOs benefits while dispersing costs to others.
Uncle Sam Can't Count is filled with examples of government failures and free market triumphs, including
Uncle Sam Can't Count is a hard-hitting critique of a government completely incapable of either picking winners or learning from its many mistakes, which demonstrates why business should be left to private entrepreneurs.
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