O’Malleynomics Strike Back
Low and behold, look which failed economic platform reared its ugly head again:
Gov. Martin O’Malley unveiled yesterday a proposal to invest $1.1 billion over the next decade to cement Maryland’s status as a pre-eminent hub for biotechnology research, including stem-cell studies aimed at finding breakthrough medical advances.
The funding, which would build on existing tax credits and grant programs, would be used to create a biotechnology center, finance capital projects and make equity investments in start-up companies. O’Malley, a Democrat, said the money could transform Maryland – where the human genome was mapped in 2001 – into a global leader in personalized medicine or the use of genetics to tailor treatments.
That’s right boys and girls, O’Malleynomics are back. Once again, Governor O’Malley is going to stick the state’s nose where it doesn’t belong, in the private sector, and reallocate taxpayer dollars in order to fund unnecessary state priorities.
Don’t get me wrong, I am very much in favor of science, and I am comfortable with the idea of tax credits to encourage further business growth in the state. But will O’Malley and state Democrats ever learn their lessons when it comes to government investment in private businesses? What role should government have in financing capital projects for private businesses? Why should the state gamble taxpayer dollars as part of venture capital schemes?
What’s even further damning about O’Malley’s plan is that it comes on the heels of higher taxes and reckless spending during the previous General Assembly session. The most important tax raised by the Democrats during that session was the “Millionaire’s Tax” that disproportionately impacted Montgomery County, the very area most likely to benefit from O’Malley’s largesse. The irony, of course is that it is likely that the necessity of these proposed state investments in biotechnology probably could have been avoided had O’Malley and company not created incentives for companies and entrepreneurs to relocate to Virginia due to Maryland’s profligate tax and spend nature and the impact of the O’Malley Recession.
Time and time again, instead of encouraging private development of economic resources, instead of allowing the market to create a sustainable environment for economic growth, Governor O’Malley has returned to the failed policies of O’Malleynomics to try and earn political capital and to prop up industries that he favors. Time and time again, we have seen the impact of O’Malleynomics produces higher taxes and lower disposable income for middle and working class Marylanders, and the benefit, if any, from O’Malley’s plan to throw money at this project is going to be infinitesimal, if such benefit exists at all.
If you missed the policies of economic failure, they are back with a vengeance…