Corporate welfare
Another interesting front-page story in the Democrat-Gazette today suggests Arkansas may be in the running for a huge steel mill, if we are willing to outbid Louisiana for the privilege. The handouts could be huge, maybe up to $1 billion for a $3 billion plant that would employ 3,000, according to a Times-Picayune estimate.
As luck would have it, the Arkansas Blog community includes a veteran government observer with insight into Alabama politics. That's another state that has been seeking the big operation proposed by ThyssenKrupp. The observer says:
Is Arkansas getting ready to buy a pig in a poke? This German steel company is demanding enormous concessions. I understand Alabama is no longer interested on account of the incentives the company is demanding. It's a shakedown. The concessions reportedly include easing air and water pollution standards for 25 years and exempting all taxes, including school taxes, for 25 years. La. Gov. Kathleen Blanco is pushing for the plant to shore up her political standing, but a lot of legislators -- including the New Orleans contingent -- said it would be immoral to give this company what they are demanding when people still can't get hurricane relief. If Alabama rejected it, and Louisiana is lukewarm, why are we lifting our skirts?



Comments
I can't speak for Bama or Lousiana, but we are lifting said skirt... Britney style.
My understanding is that Huckabee economic developer guru Larry Waltha and others have been to Germany and, however much skin it took, we have showed it.
Posted by: Julianna
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December 12, 2006 10:23 AM
Here we go again; using 1950's thinking to solve 21st century problems. Manufacturing is not going to save this state, high tech talent will. Educate, educate, educate.
Posted by: Janus
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December 12, 2006 10:29 AM
I can understand your reluctance to entice industry into our state, but the facts are that industry is good for our economy. I was in Evansville, Indiana last week and the town boasts three automobile related assembly plants. The economy is booming; lots of jobs; lots of economic activity. Sometimes you have to spend money to make money and that includes government as well.
ARK. BLOG: But any businessman knows that any investment should be subject to a cost-benefit analysis. It should not be a given that whatever amount an industrial prospect seeks is worth the benefit.
Posted by: HankRearden
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December 12, 2006 10:41 AM
At least any concessions here will go directly to the industry locating here, right?
Although that approach can be debated, it's better than the payola cities give to developers. Tom Carpenter and the city of Little Rock have added countless dollars to water, electric and telephone rates by making those utilities help pay for their buddy-buddy developers' projects. Instead of the costs being paid by the developers themselves, the city is spreading it out to utility rate payers throughout the city... whether the private development is going to benefit them or not.
At least in the case of the steel plant, we (hopefully) aren't paying off the middleman.
Posted by: Sparky
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December 12, 2006 11:04 AM
"...Sometimes you have to spend money to make money and that includes government as well."
Well Hank, if government welfare is good for corporations, I say apply that generous 'good' spirit to the country's poor. If we spend money feeding, education and enabling the least among us then it will come back to us tenfold. (then we'll have a healthy, well educated/trained workforce and won't have to sell our air/water to corporations.)
I'm always confounded by how so many conservative types go on and on about 'pure' capitalism...about how the marketplace should be the ultimate determiner of which businesses survive...but then have no problem with deals like this, or with deals that feather their own money nest. Corporate welfare is just that.
Good for Alabama. The 'average' Arkansan likes clean air, water AND a job. Any politician that says they must trade a state's natural resources (environmental safeguards) for jobs is a lazy, greedy liar.
Posted by: zelda
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December 12, 2006 11:04 AM
I think we could get Costco to enter this market if we exempted them from having to collect sales taxes and pay property taxes for 25 years or so. They pay their folks living wages & provide good benefit packages from what I've heard and wouldn't ruin the air & water like the steel mill proposal would. I wonder what the folks in Bentonville might think of that idea?
Posted by: MysteryShopper
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December 12, 2006 11:30 AM
The concessions reportedly include easing air and water pollution standards for 25 years and exempting all taxes, including school taxes, for 25 years
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Are we (AR) considering this amount of concession and more?
Sure looks like way to much concession to this hillbilly.
Where would this plant be located?
What are the environmental impact implications?
Lifting skirts? How about
bend over, inhale toxins children because your schools are in all actuality just an unfunded holding cell. And parents (employees) indentured servants working to support corporate leeches for the next few generations.
For whom?
We should at least insist they make cans so the folks to ill to work at the plant can wander the ditches for scrap pay.
Competing for last place, what fun.
Posted by: Eureka Springs, AR
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December 12, 2006 12:40 PM
Germany doesn't let them off the hook with this crap now they are trying to unload it on dumbass Southerners?
Tysons tried this same stunt in the 70's with chicken plants. It didn't work. Standards are standards and what's good for American corps is good for German corps.
Just let Tyson put in a plant in Germany and see how many standards are eased, how many taxes are forgiven.
Louisianna is already known as "Cancer Alley." Many insurance companies will not operate their suplemental sales in La due to high incidence from the chemical wastes. Let Looseeeanna keep its
Cancer Alley rating.
Posted by: Lwood
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December 12, 2006 01:02 PM