The Somerset Pennsylvania county commissioners have voted to finance a shredding operation. The county will pay $196,479 for Bedford-Somerset Mental Health to buy equipment.
This grant will allow the agency to set up a shredding service. To provide the labor they will pay below market wages to retarded employees. The money saved can then be used to pay above market salaries to the directors of Bedford-Somerset Mental Health. The beauty for the directors is they don’t even have to supply the capital they need for their scheme.
It is never wise for the government to pick a winner in the market. By using tax payer money the county commissioners are changing the market and driving others out of business. A shredding company provides decent wages to drivers that allow them to raise families. The employees can then buy homes and pay property taxes and salary taxes.
No company can compete with the pittance that the mentally retarded get paid. They organizations hide behind the veil of being a non-profit but are really a tool for managers to enrich themselves by taking home any profits as salary. So they are removing a source or revenue and replacing it with a drain on the counties resources.
If Bedford-Somerset Mental Health has a better model for a shredding company then let them compete in the free market. They should pay their employees at least the minimum wage. If what they offer is better then they will be rewarded and everyone will benefit. If they can only exist by taking in grants then the money would be better spent just giving the assistance directly to the people who need it. The money spent lining the pockets of the directors would not be passed along to the tax payers. Using tax dollars and putting some people out of business to support the ones who support the politicians always ends in a loose-loose model.
