Tuesday, July 25, 2006

"Economic Development"

Is a farce

The State of New York legislature just completed its budget session for 2007; some of it was on 'economic development'. This is basically special tax breaks and other incentives that the legislature has given to some businesses as opposed to other businesses, or to you and me for that matter. 'Economic development' is a scam.

One of these econ development items is a $1.2 billion (with a "b") 'incentive package' to Advanced Micro Devices to build a plant in Saratoga County for 1,200 jobs in the plant. Note that this works out to one million dollars per job created. That's pathetic.

Another scam item 'incentive package' of $25 million is to Delphi autoparts, which has of course filed for bancruptcy, to keep plants in the western part of the state.

Awaiting governatorial signature or veto is a $100 million energy rebate program to businesses (where's mine for my blog business? I moved to Brooklyn WITHOUT an incentive as do so many others thus the property prices. I'll hire 2,400 people for $1.2 billion - twice as good a deal as AMD ! ) and tax credits for the film industry, more Prada films anyone ?

This is just a government as special interest group spending, why dont the voters do something about it?

The New York Post had a good editorial about how the high oil company profits and taxes they pay are helping the US Government's budget deficit. Isnt this the kind of wealth-creation and business enterprise we want to support, not those which require special breaks to stick around? Even after they've gone bancrupt?!