Charles Ungerleider, Professor Emeritus, The
University of British Columbia
[permission to reproduce granted if authorship is acknowledged]
According to a new study by the Leisure Institute, a non-partisan Canadian think-tank, government subsidies for private golf club memberships would save the province millions,
"Subsidizing private golf clubs would reduce the strain on government finances and save taxpayers money," said Chip Greenway, associate director of leisure policy at the Leisure Institute. "Public courses aren't the right fit for every golfer. But, making private courses affordable for middle-income families would reduce the competition for tee-times at public courses and the cost of public course maintenance because fewer golfers would be using public facilities," Greenway said.
Specious, yes?
Well, the Fraser Institute makes a similar argument about government funding for private schools in a May 2024 news release. “Some people claim that BC’s funding for independent schools take resources away from government public schools, but in fact, funding independent schools actually reduces the strain on government finances, saving taxpayers money,” said Paige MacPherson, associate director of education policy at the Fraser Institute.
I am guessing that, in the run-up to the provincial election, the Fraser Institute was worried that the B.C. government might stop subsidizing private schools to the tune of more than $360 million per year. “Government public school isn’t the right fit for every child, and BC’s school choice policies make independent schools affordable for many middle-income families,” MacPherson said. “If funding for independent schools was taken away, many families would have no choice but to migrate to the government school system, limiting school choice for parents and increasing costs for taxpayers.”
There are variations on the Fraser Institute’s theme. Subsidies for professional sports stadiums are a prime example. Subsidies by government are often justified by promising economic growth and job creation. Studies have shown, however, that these benefits rarely materialize as promised. Instead, the costs often outweigh the benefits. For example, the Citizens Against Government Waste report explains how the use of public funds for stadiums often leads to increased local taxes without corresponding economic gains. The Brookings Institution found that US government subsidies through tax-exempt bonds for stadium construction have cost taxpayers billions without delivering substantial public benefits.
Corporate subsidies are another area where the supposed benefits are not realized. According to the Hoover Institution, US federal subsidies to businesses cost taxpayers nearly $100 billion annually. These subsidies are often justified on the grounds of job creation and economic competitiveness. The benefits, however, largely accrue to large corporations disproportionately while failing to deliver the promised economic growth.
If you buy the
Fraser Institute’s argument about the BC government’s funding of private
schools, please send me $800 to subsidize my membership at a private golf
course of my choice. Or, better yet, join my investment club where I guarantee
unconditionally to return half of your initial investment in less than a year.