incredible econ story. a new right-wing governor in south korea refused to pay a few million bucks to honor a loan guarantee his predecessor signed to build a legoland, not understanding that this would crater the entire country's $2 trillion bond market https://t.co/DEoAb7IPqo
Stop pledging tax payer money to pay off corporate greed. If the project was viable corporation wouldn’t need public funds. It is just like the rip off stadiums in the state or the biggest rip off in the world, the Olympics.
ChickenHead
2 years ago
Flyingsword, you just don’t understand the modern financial system.
Privatize profit and socialize risk works very well.
Make everything about crony capitalism and then address any exposure of the corruption as “capitalism failed” and then have a government solution that involves even more wealth transfer.
This is unsustainable and everyone now accepts that.
The solution is world war.
And that is the solution that is being implemented.
lee
2 years ago
How does not building one theme park destroy the entire country’s bond market?
ChickenHead
2 years ago
Lee, you bring up a great question.
Let’s look at it this way:
Building a theme park with a crappy business plan at taxpayers’ expense: terrible idea managed by terrible people likely involving corruption
Having a bond market to spend money you don’t have on things you don’t need to pay interest you can’t afford: terrible idea managed by terrible people likely involving corruption
Telling Lego to go shìt a brick might be the right thing to do. But going back on a promise is almost never the right thing to do. This applies both to people and the financial commitments of government.
If I were in charge, I would evaluate if this was a net gain or loss for the area and the taxpayers. If it was a loss, I would determine if this is the fault of Lego, the government officials who negotiated the deal, or someone else.
From there, I would look at civil or criminal action against those responsible within the framework of the law.
This would serve as a warning to companies with bad intentions (which Lego probably didn’t have) and government officials negotiating incompetently (probably) and government officials trying to play high roller instead of looking out for those they represent (very probably) and bribe-takers (maybe).
setnaffa
2 years ago
But CH, how is a crooked political hack going to afford those private jets to fly to Climate Conferences without a little something-something from crooked corporations?
I mean, it’s not as though their salary is going to build a sufficiently-large nest-egg…
Stop pledging tax payer money to pay off corporate greed. If the project was viable corporation wouldn’t need public funds. It is just like the rip off stadiums in the state or the biggest rip off in the world, the Olympics.
Flyingsword, you just don’t understand the modern financial system.
Privatize profit and socialize risk works very well.
Make everything about crony capitalism and then address any exposure of the corruption as “capitalism failed” and then have a government solution that involves even more wealth transfer.
This is unsustainable and everyone now accepts that.
The solution is world war.
And that is the solution that is being implemented.
How does not building one theme park destroy the entire country’s bond market?
Lee, you bring up a great question.
Let’s look at it this way:
Building a theme park with a crappy business plan at taxpayers’ expense: terrible idea managed by terrible people likely involving corruption
Having a bond market to spend money you don’t have on things you don’t need to pay interest you can’t afford: terrible idea managed by terrible people likely involving corruption
Telling Lego to go shìt a brick might be the right thing to do. But going back on a promise is almost never the right thing to do. This applies both to people and the financial commitments of government.
If I were in charge, I would evaluate if this was a net gain or loss for the area and the taxpayers. If it was a loss, I would determine if this is the fault of Lego, the government officials who negotiated the deal, or someone else.
From there, I would look at civil or criminal action against those responsible within the framework of the law.
This would serve as a warning to companies with bad intentions (which Lego probably didn’t have) and government officials negotiating incompetently (probably) and government officials trying to play high roller instead of looking out for those they represent (very probably) and bribe-takers (maybe).
But CH, how is a crooked political hack going to afford those private jets to fly to Climate Conferences without a little something-something from crooked corporations?
I mean, it’s not as though their salary is going to build a sufficiently-large nest-egg…