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It is easy to get caught up in the minutiae when it comes to economic policy. With the state facing a $400 million deficit and budget cuts in the offing, every special interest is busy coming up with their own economic analyses explaining why subsidies or regulations that serve their own interest will really benefit the public at large.
The fact is that more often than not, simple logic is more useful than complex economic studies that are ultimately designed to justify a predetermined policy.
This logic can be best summarized as “There is no such thing as a free lunch.” Specifically, I’m referring to the fact that government’s taxing one citizen’s hard-earned money and transferring it to another, preferred group, does not increase our economic prosperity.
Advocates for continued subsidies for New Mexico’s film industry have flatly refused to accept this reality. Advocates for the film industry, which receives a 25 percent rebate on all spending done in the state would have us believe otherwise.
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