tommy1808 wrote:bigjku wrote:But the two things do very different things. The first adds profitability and margin to an entities operation. The second just hands them money on non-commercial terms.
One is subsidizing increased competition, the other bolsters existing companies/projects. As a tax payer I know what I rather see my money in, the one that drives down prices, which is the RLI way.
Reducing taxes increases profitability outlook, which increases the chance of any number of projects to be given the “go ahead”. That has an effect of competition, too.
Also, the A380 sucked up an enormous amount of engineering resources and time at Airbus who could instead have built a different aircraft that would have had a meaningful impact on the industry. In terms of competition, too, but in many other ways as well.
This has been a colossal misallocation of capital with negative implications for Airbus (despite being off the hook from a purely financial perspective), Europe, and in this globalized planet, the whole planet loses.