Spending Other People's Money Always Makes Perfect Sense to a Politician

Never slow to take up an opportunity to spend tax payers' money on some "important" world event (think Rugby World Cup 2011- conservatively $39 million plus, America's Cup 2013  - $33 million), the government has now committed to spend $53 million to have a stall at the World Expo in Dubai in 2020. Every time the tax payers are left on the hook for one of these jollies, there is the inevitable chorus of politicians and economists telling us how well worth it the whole project has been. Endless econometric studies showing how much extra income has been generated and how it's boosted our brand, etc. I for one, however, am not convinced. Econometrics is what told you how the UK economy would collapse after a Brexit vote. Never have so many predictions been so badly wrong.

How about we ask three questions before committing to this sort of thing?

1. What is the opportunity cost of this investment? If the government took $53 million less tax from the export sector between now and 2020, I suspect they could do a much better job of using that money to grow their businesses, which would benefit New Zealand big time. Can the government actually prove that this shin dig in Dubai will do any better?
2. Is this project going to grow the government sector more than the business sector? There may be some demonstrable benefits from having a New Zealand stall at the World Expo, but this money will be spent through government channels. If it makes the government bigger, does it really benefit business in the long run?
3. What other agendas are being served here? Government loves big business and, regardless of what they might tell you, hates small business. Why? Because small business represents freedom and independence from the state: Ordinary people controlling their owns destinies. Big business gets into bed with the government and carves things up to suit both parties.

Now, think about it, is the World Expo 2020 in Dubai really going to help Mum and Dad businesses here in New Zealand?  No, it will further the ends of multi-nationals, big businesses, and governments at the expense of ordinary people, and they'll be using your money to do it, too!