Kelo - the aftermath

From The Liberty Papers:

Interestingly, this new development that was supposed to bring in so much revenue and jobs to the City of New London remains an empty lot. The city has lost a tax base and the only new jobs which were created were for demolition.

I admit: I didn't see this coming. I continue underestimate the stupidity and harmfulness of government.

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If your core competence is some form of value creation, you are unlikely to succeed at value seizure. If your core competence is value seizure, you are unlikely to succeed at value creation.

If an entity is the beneficiary of value seizure, the value successfully seized will usually be much less than the value destroyed.

If, for example a burglar seizes a gold coin, he, not knowing the value, not knowing where to sell it, and not being willing to shop around, will sell it at about ten to twenty percent of its fair price. If a government exercises eminent domain, the beneficiary of that eminent domain is no more likely to have appropriate skills and knowledge to deal with what it obtained than is the average burglar.

I know of two cases of government seizure of property that occurred near me, places that I passed from time to time - a church and a bookshop. They both wound up abandoned.

Some time ago I saw a calculation of General Motors capital consumption - it was huge, totally unsustainable, completely non viable, and was completely non viable back in 2002. There is no way that organization should have been allowed to continue to function. It should have been closed down in 2002-2004.

Bailouts saddle us with rich criminals and zombie businesses. If liquidity creation is needed, which I doubt, it would be far less damaging to fill a 747 with hundred dollar bills and fly over cities shoveling them out the doors.