This argument again assumes that governments do a good job of deciding what areas and sectors 'deserve' loopholes and which do not. The fact that the distribution of resources would change if we abolished certain tax loopholes is probably a sign that these areas have been artificially inflated in terms of their resource allocation by these very tax credits and loopholes, and should therefore be returned to market standards. The selection of many of these sectors for credits may well have been done not on an economic but rather on a political basis, for example in order to protect jobs in some sectors and help boost a government's votes at election time.