Mayor Corroon: Hurting Utah’s economy by restraining free trade

Hurting Utah’s economy by restraining free trade

Mayor Corroon proposes to create more jobs in Utah by paying more than is necessary. He wants to “require major firms that win state contracts to subcontract a substantial
portion of the work to Utah businesses.” On its face, that sounds like a reasonable requirement. However, as the great French economist Frederic Bastiat noted, what is unseen is usually more important than what is seen. The problem with this proposal is that it guarantees that Utah
taxpayers will pay more than is necessary. If major firms are already subcontracting with Utah firms, this requirement doesn’t matter. Those Utah companies are subcontractors because they offered the best value for the money. So Mayor Corroon’s proposal only matters where a Utah
company doesn’t offer the best value for the money. Mayor Corroon, though, thinks Utah taxpayers should pay more, just because a company is from Utah. Paying one contractor more
means Utah must provide fewer services elsewhere. That isn’t economic development; it’s warmed over protectionism.

Mayor Corroon has some good ideas. Creating a positive climate for private investment is good economic policy, as is the apparent goal of ending RDA abuse. Unfortunately, those
laudable goals are outweighed by the Corroon tax, property tax increases, his support for UTOPIA, and his devotion to protectionism.