A typical example of this is the proposed construction of a multi-purpose events center on sixty acres near the Yuma Palms Regional Shopping Center. Not many would question the need or the desire to have such a center. As matter of fact there are probably many other needs and desires that the people of Yuma would love to see built. A TGI Friday’s restaurant, a Baskin Robbins ice cream store, or even a domed stadium so that Scorpion fans would not have to swelter during the games might all be nice attractions for the Yuma community. Of course, not everyone might agree that even these would be desirable. Some might and probably would desire other types of activities.
A problem, though, always arises and antagonism instigated when government interferes with the process of the free market and is the reason Marx’s philosophy as been proven false time and time again. When government enters the marketplace and interferes with the free process of trade between individuals, like the city government is doing with Global Entertainment Corporation and Yuma consumers, it does so with the use of force. Taxes are forced payments by individuals whether it is through direct taxation or through the proposed Communities Facilities District (CFD). City tax revenue or assets are the backup of the last resort for such an entity. In other words, all the citizens of Yuma are forced to back this project whether they want to or not.
Taxing businesses in support of this project is not the answer either. Businesses just become the unpaid tax collector for the city, county, state and/or federal governments in projects like these. Businesses do not pay taxes, only individuals pay taxes.
In the free market only those who voluntarily patronize a project support the project. When markets are left alone by government officials there is a lot less antagonism and disgruntlement because individuals are free to choose whether to participate. The event center planned for Yuma and how it is financed is typical of other such activities all throughout the United States. The Arizona Cardinal stadium, the gigantic new stadium in Dallas being built for the Dallas Cowboys and many other such projects all follow the Marx philosophy of the ends justify the means because the reason given is the economic boost to the locale in question that will take place.
However, what is not seen is all of the economic activity that arises when government does not take the incomes of private individuals thereby allowing the individual to decide for himself how to spend that money. Some would save giving banks the wherewithal to loan the necessary funds to corporations like Global to build such arenas if in fact there really were enough of a demand for such a building. Others, as the great economist Henry Hazlitt highlights in his book, “Economics in One Lesson,” would spend their money on other projects, but the economic impact would be the same. Actually, the economic impact would be greater because there would be economic growth instead of economic replacement.
City, state, and national governments exist in the same manner that a referee in a football game exists, to see to it that the players do not cheat on one another. The referee is not suppose to play favorites as does the city when it uses its funds forcefully taken from its citizens and gives it to a special favorite business. The other players (businesses and individuals) feel hurt and ask why the government, in this case city government, does not do something special for them. This is where the antagonism and animosity is created. When it is done on a state and national level, war can result.
Karl Marx was, is, and will always be wrong; the ends never justify the means. Stealing a car to go to the movie theatre is unwarranted. One must first get permission from the owner.
To get the event center or any business venture to come to Yuma government must remove itself from the financing and/or construction of the center, all regulatory laws regarding doing business in Yuma must be removed, and as little a tax structure as possible must be maintained. This would encourage private individuals and businesses to spur economic growth in Yuma. By restraining government to its proper arena, the arena in question might properly get built.