Keeping Options Open

Dear Prof. Bolton: I’m acutely aware of the chronic stagnation of many rural areas in our state, and even actual sharp declines where old mills have closed. Senators from rural areas keep pressuring me to vote for aid packages financed out of the state budget. From your earlier writings, I would guess that you’re sympathetic. But, tell me please, why should I care? It’s not a hostile question—I don’t mean to imply my mind is made up. Rather, I’m looking for a clear economic rationale for a policy. I’m convincible—but not convinced, yet. Remember I’m a legislator from a booming urban/suburban district down here in our state’s biggest metro area. The rural senators tell me it’s simply logrolling. Isn’t there a better rationale than that? I’ll have a tough time defending use of my constituents’ tax money for bailouts. Did I mention I’m getting memos from the Hayek Freedom Center down the street, about letting markets work, and “tough love”?