Industry Assistance and Crony Capitalism with Darren Brady Nelson

<p>Economics Explored host Gene Tunny is joined by <a href="https://www.heartland.org/about-us/who-we-are/d-brady-nelson" target="_blank">Darren Brady Nelson</a> of LibertyWorks and the Heartland Institute to discuss the economics of industry assistance or so-called corporate welfare. Gene and Darren also consider the concept of crony capitalism. </p><p>This episode’s topic was prompted by an interview request host Gene Tunny had from an Australian ABC journalist regarding the Australian Government’s generous tax incentives for the film industry (e.g. check out Australian Prime Minister Scott Morrison’s July 2020 announcement <a href="https://www.pm.gov.au/media/new-400-million-incentive-boost-jobs-screen-industry" target="_blank">New $400 million incentive to boost jobs for screen industry</a>).</p><p>In 2019, Gene and Darren co-authored a paper on bad spending decisions made by the state of Queensland, Australia for <a href="https://www.taxandsuperaustralia.com.au/Documents/TRFL/Taxsuper%20Australia_Special%20Centenary%20Publication_2019%20v2.PDF" target="_blank">Tax and Super Australia’s Special Centenary Publication: Government Waste</a>, and identified generous spending on Screen Queensland and the state government paying for the construction of a new sound stage at Village Roadshow studios on the Gold Coast.</p><p>Gene has previously written extensively on film industry assistance in Australia - e.g. this 2017 Centre for Independent Studies Policy paper: <a href="https://www.cis.org.au/app/uploads/2017/03/33-1-tunny-gene.pdf" target="_blank">The case against film industry subsidies</a>. </p><p>On the experience of other jurisdictions with subsidies to the film industry, check out this <i>Advocate</i> article: <a href="https://www.theadvocate.com/baton_rouge/news/business/article_c1d98d48-5193-11e9-b6a0-7bc2825afed3.html" target="_blank">Film tax break costs Louisiana millions, new study shows</a>. </p><p>Regarding what a refundable tax credit is, check out the <a href="https://www.irs.gov/credits-deductions