Mississippi
has finally got a top ranking among the states. Problem is, it’s an
achievement the state can do without.
A study by researchers Cheol Liu from
the City University of Hong Kong and Indiana University’s John
L. Mikesell found corruption in Mississippi was tops among the
states from 1976 through 2008. The study sized up the effect of
public corruption—measured by convictions—on state
spending. Data after 2008 for all of the areas of their
research was incomplete.
Mississippi tops the 10 most-corrupt states in America.According to the study, the 10 most-corrupt states could have reduced per capita spending by an average of $1,308 if they had average corruption levels. The study found states in the top 10 tend to focus spending on “bribe-generating” spending and items directly beneficial to public officials such as capital projects, construction, highways, borrowing and total salaries and wages.
According to Jon Moen, chairman of the
University of Mississippi’s economics department, corruption
has clear consequences for the state with wasteful spending,
misallocation of resources and lost productivity.
“Clearly corrupt officials will encourage
activities or businesses that will also provide them with the most
benefits, whether they are outright bribes or more legal benefits
like campaign contributions,” Moen said. “Rarely are these
activities that are true public goods, like elementary education, as
they provide few direct monetary benefits that can be appropriated by
a politician or private interest.”
The top 10 most corrupt states, according to the
study, are:
- Mississippi
- Louisiana
- Tennessee
- Illinois
- Pennsylvania
- Alabama
- Alaska
- South Dakota
- Kentucky
- Florida
A climate of corruption or even a perception of
one can lead to serious economic effects. The study cited several
sources on how economic activity is depressed in nations riddled with
corruption. States are no different.
With economic activity depressed because of
corruption, states such as Mississippi are forced to use more
subsidies and tax breaks. This encourages companies to engage in more
rent-seeking behavior—spending wealth on political lobbying to
increase one’s share of wealth without creating wealth. This
can build an even more entrenched climate of corruption with
companies constantly seeking to maintain or even add to special
privileges not afforded their competitors.
Mississippi’s massive tax incentives to
encourage companies such as Nissan, Toyota and Yokohama
Tire to relocate or, in the case of Cooper Tire, to remain in the
state, are some examples.
“Corruption also results in less-secure
property rights, and that makes smaller businesses less likely to
invest as much as they otherwise would or even avoid the corrupt
state altogether,” Moen said. “This depresses the overall level
of economic activity, but in ways that are not obvious. A few
well-connected businesses always will appear successful, and the
politician can point to them as evidence of his ability to produce
economic success. No one ever knows which businesses decided not to
start-up in a corrupt state.”
My comments: Obama is bent on making the US one of the most CORRUPT nations on earth. It seems that everything he instigates is CORRUPT. Godlessness has its consequences and always ends up in RUIN.
No comments:
Post a Comment