Utterly Meaningless » Blog Archive » CORPORATE WELFARE RUN AMOK

    Filed at 5:18 am under by dcobranchi

    The New York Times has a wonderful article about a particularly loathsome form of corporate welfare- the bribes, er, “incentives,” that states grant to get businesses to get them to relocate. All of the states do it and they all know it’s stupid.

    That doesn’t mean that [Indiana] Governor Kernan intends to stop offering subsidies. “I understand the argument that taking jobs away from Boston and putting them here is nationally a zero-sum game,” he said. “But Indiana, like virtually every other state, is not going to unilaterally disarm.”

    What a bunch of lemmings! If I lived in Indiana, this quote might be enough to make me run for office as a Big “L” Libertarian:

    Ninety-three cities bid for the center, and United finally settled on Indianapolis, promising to add $500 million of its own money to the $320 million that the city and state raised through bond issues. United’s $500 million would go mainly into future expansion, and there was expansion. But in the end, the airline invested only $229 million. The city, operating through the Indianapolis Airport Authority, even owns the tools arrayed in each of the 12 hangar bays, ready for the next tenant.

    United plainly drove a hard bargain. But the deal was signed during the 1990-91 recession, and the hard times encouraged the state to fold some Keynesian stimulus into the agreement, said Mark S. Moore, director of public finance for the state of Indiana, and one of the negotiators. “Whether we spent the dollars or United spent the dollars, let’s not forget it was a recession,” he said. “We put lots of people to work building that facility for a lot of years at good wages.”

    The state gave United $320 million dollars in bribes and is paying $40 million per year to service the debt and maintain the now abandoned building. Your tax dollars not working at all!

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