the same thing happened when they introduced government funded projects to soak up unemployment. In the end what these schemes do in any form is introduce massive distortion into the labour market as well as inefficiencies into the supported businesses. that happens whether it is because of work for the dole type schemes or subsidised labour.
the money that is spent on this stuff could be put to better use by identifying ways of improving the business eco system, supporting the development of new business and establishing policies that facilitate growth of small business rather than subsidies.
i find it interesting however that those most keen on these punitive but distorting solutions are those who supposedly believe that capitalism is the best way.
if that were the case they would allow the market to do its thing
