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Accountability folly free trade & free markets local leaders moral hazard nannyism porkbarrel politics responsibility too much government

Small Target, Big Subsidy

Something has gone wrong when, to get a tenant to move into an empty space in your prime-location building, you need a $4 million subsidy.

And when I say “prime location,” I’m not engaging in Trumpian over-statement. The downtown Denver, Colorado, property location sees over 35,000 pedestrians per day . . . and that’s with the primo slot empty.

But to get that slot filled, the owners have negotiated with the city government to nab a $2 million “incentive” to fix the place up for Target, which is thinking of leasing the location to put up a smaller-than-usual “flexible-format” store. Oh, and another $2 million for “operational” costs, which seems to be some kind of a loan to be paid back from taxes to be collected — and shared by the city for 20 years with the owners.

In other words, it’s the darnedest business deal you’ll ever see (and never get): up-front money not from a bank or investors, but from Denver’s city government “BIF” — Business Investment Fund — which is obviously part of a convoluted scheme fed by taxes and devised by . . . people I wouldn’t trust with my money.

Structuring deals like this is how modern cronies — er, cities — operate, I know. Am I alone in judging it corrupt on the surface and corrupting in the details?

If prime commercial property has gone unused for about a decade — as this three-storied mall space has — I’d think that maybe the owners have set the rents too high or the city has been a bit too greedy with taxes.

Or both.

This is Common Sense. I’m Paul Jacob.


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Accountability crime and punishment folly government transparency insider corruption local leaders porkbarrel politics responsibility

Hog-Wild Corruption

Former Arkansas State Rep. Micah Neal pled guilty last week to a felony charge of conspiring “with an Arkansas state senator to use their official positions to appropriate government money to certain nonprofits in exchange for bribes.”

Neal, who embraced graft his first month in office, received $38,000 in “legislating-around” money between 2013, when he entered the House, and 2015.

Court documents mention a number of seasoned conspirators, though not by name. There’s mysterious Senator A, who took Rep. Neal under his crooked wing.

Their scheme, reported Arkansas Business, “direct[ed] $600,000 in state GIF funds to the Northwest Arkansas Economic Development District, which then distributed it to two nonprofit entities.” Those two outfits — Entities A and B — then kicked back dough to Rep. Neal and Senator A through bagmen.*

Arkansas Business sorted out “the alphabet soup of unindicted people and entities.” It turns out Senator A, the ringleader, is someone we’ve encountered before: former State Senator Jon Woods.

Remember Issue 3, the dishonestly-worded 2014 constitutional amendment that weakened term limits (while telling voters it “established term limits”), imposed a gift ban so “tough” that now all legislators can get free meals from lobbyists anytime, and created an “Independent Citizens Commission” (a majority appointed by legislators) that gave legislators a 148 percent pay raise?

That was Woods’s.

His indictment appears imminent.

Meanwhile, Neal’s attorney extends to us his client’s wish that “this case does not overshadow all the good he did while serving as [a] representative.”

What good? The term limits scam.

Neal’s corruption doesn’t overshadow all he did as a legislator — it illuminates it.

This is Common Sense. I’m Paul Jacob.

 

* Three additional conspirators were engaged in delivering the bribe money to Rep. Neal and Sen. Woods. In court papers, these bagmen were referred to as Person A (a lobbyist for Entity A), Person B (“the president of Entity B and a friend of Senator A”) and Person C (“a friend of Senator A and Person B”).


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Arkansas State Rep. Micah Neal, Independent Citizens Commission, Senator Jon Woods

 

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Common Sense folly ideological culture porkbarrel politics

A Futility Triptych

Port Angeles is a quaint town on the Strait of Juan de Fuca, in Washington State. It now sports three state-of-the-art wind turbines. Which were purchased with more than just generating electricity in mind.

“They were also meant to educate folks about wind power,” City Councilwoman Sissi Bruch said recently.

And the activists, politicians and bureaucrats responsible for the $107,516 purchase achieved that, surely. Just not the way they intended.

You see, based on current Bonneville Power Administration rates, the turbines — described by Paul Gottlieb of the local Peninsula Daily News as “windmill-like” — are expected to “produce $1.50 a month in savings.”

The city council members express regret about that, and admit these monuments to enviro-consciousness are a boondoggle. But they insist: they never expected the generated electricity to pay back the investment. From what I can tell, the generated electricity won’t even pay back their maintenance cost, though Mr. Gottfried did not clarify that in his Daily News report, mainly because the maintenance costs are as of yet unknown.

Further, as a result of Port Angeles’s wet, salty-air environment — they are located in a park by the Strait — they are not expected to last past 25 years.

But it gets worse! They are not even running yet. They await Underwriter Laboratories inspection and approval. They stand motionless.

Monuments to the futility of wind power.

OK, the futility of wind power in most locations.

The turbines do look cool. I like their vertical design. I merely suggest one alteration (for efficiency of message): the blades should be shaped as dollar signs.

This is Common Sense. I’m Paul Jacob.


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Accountability free trade & free markets insider corruption media and media people national politics & policies porkbarrel politics

Crony Carrier

Sure, I’ve complained about the over-the-top anti-Trump bias of much of the mainstream media (which may actually have improved Trump’s public standing). But, today, I enthusiastically celebrate that supercilious slant.

Why? Because it means much of the media amazingly finds itself on the right side, panning the recent deal to save 1,000 jobs at the Carrier Corporation.

Saving jobs is good per se. We want jobs to stay here in America. But, at what price?

Thus far, the deal remains secret, but according to Politico, “The agreement reportedly includes $7 million in state tax breaks over ten years offered by the Indiana Economic Development Corporation, a quasi-public entity that doesn’t require legislative approval for its deals.”

“Quasi-public entities” always make me queasy.

“Can American companies now merely threaten to go to Mexico,” asks Chris Rossini in the Ron Paul Liberty Letter, “in order to get a sweetheart deal for themselves?”

This special arrangement’s costs are not merely monetary: Special deals for some companies at the expense of others undermine the whole concept of equality under the law.

File under: crony capitalism.

Even the socialists at The Nation say the agreement “epitomizes corporate socialism at the expense of American taxpayers.”

“I certainly think that, if President Obama had done something like this, conservatives would have been freaking out,” argues Reason’s Peter Suderman.

Many are. Well, maybe not exactly “freaking out” — but vocally opposing the idea of the not-quite-yet-president picking winners and losers in the marketplace.

Crony capitalism didn’t make America great. Our revolution’s justification prompts the antithesis.

This is Common Sense. I’m Paul Jacob.


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Carrier, crony, cronyism, Trump, corporate, illustration

 

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ideological culture media and media people moral hazard nannyism national politics & policies porkbarrel politics responsibility too much government U.S. Constitution

Diversity, Identity, and the Liberal Implosion

“To paraphrase Bernie Sanders, America is sick and tired of hearing about liberals’ damn bathrooms.”

Finally. Some sense from the New York Times.

Mark Lilla, in “The End of Identity Liberalism,” delivers a valuable lesson about political correctness — without once mentioning the term “political correctness.”

Now this is a lesson we can get behind.

The problem is “diversity.” The center-left became so obsessed with it that it helped sink the last election for Hillary Clinton, Democrats at large, and the coherence and legacy of President Barack Obama.

“However interesting it may be to read, say, about the fate of transgender people in Egypt,” Lilla wrote in the Friday think piece, “it contributes nothing to educating Americans about the powerful political and religious currents that will determine Egypt’s future, and indirectly, our own.”

Fixating on diversity of gender identity and racial make-up in business and government has scuttled the rights-oriented approach of the older liberalism.

Alas, Lilla is not talking about the liberalism of J.S. Mill or Lord Acton. He is talking about FDR.

But compared to today’s “identity liberalism,” FDR’s burdensome promises look like sheer genius. And Lilla understands at least one thing about diversity: “National politics in healthy periods is not about ‘difference,’ it is about commonality. And it will be dominated by whoever best captures Americans’ imaginations about our shared destiny.”

He does not bring up the real liberal message: that the way to find commonality is to avoid making government all things to all people. It is to limit its scope, instead, so the president of the United States isn’t every school’s bathroom monitor.

Perhaps an essay on The End to Hubristic Liberalism is required?

Another day. And probably another paper.

This is Common Sense. I’m Paul Jacob.


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Original (cc) photo by James Cridland on Flickr

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folly insider corruption moral hazard nannyism national politics & policies porkbarrel politics responsibility

Settled Science?!?

You probably know that America’s sugar industry is protected, making astounding profits because of high tariffs and artificially raised consumer prices.

And you likely know that government has worked hand-in-hand with agribiz interests to cook up (and regulate) a competitive sweetener, high fructose corn syrup. You understand that there are various types of sugar, and almost certainly suspect that refined sugar is bad for you, with high fructose corn syrup perhaps worse.

In fact, the scientific evidence for the danger of a high sugar diet has been around since the 1950s.

Well, what we now know, Elizabeth Nolan Brown writes at Reason, is “how the sugar industry essentially bribed Harvard scientists to downplay sugar’s role in heart disease — and how the U.S. government ate it up.”

Before Reason weighed in, my colleague Eric D. Dixon sent me a New York Times story, which stated the main proposition plainly: “How the Sugar Industry Shifted Blame to Fat.” But Reason’s Brown is right: it was government that really made this a nationwide disaster. The imprimatur of government sanctified the anti-fat craze, and the government’s own dietary guidance (and regulations) proved grossly wrongheaded.

Now we’re the ones who are gross.

Scientists and government (bought off by a protected industry) fed us a line that many swallowed. We increasingly swapped fat for refined sugars, causing health to decline as girths went out and weights went up.

So when I hear outrageous claims for the “settled science of climate change,” I look at my middle and doubt that “settled” part. And I nurture an unsettling thought. . . . it’s the political science that’s settled: government lies to us.

This is Common Sense. I’m Paul Jacob.


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