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MARCH 8, 2010 | Commentary by MATTHEW BROUILLETTE
Rendell’s War on (Some) Special Interests
Gov. Rendell, of course, didn't declare war on all special interests - only those who oppose his tax-borrow-and-spend agenda. For example, while he lambasts the natural gas industry for opposing yet another tax upon the several it already pays, he gives a pass to the special interests clamoring for more of its money.
OCTOBER 6, 2009 | Commentary by NATHAN BENEFIELD
An Honest Debate About State Spending
Throughout the budget process, Rendell has used this same tactic, called a "Washington Monument" ploy. From claiming education would be set back decades, to asserting state police would have to be laid off (allowing child predators like Roman Polanski to roam free), to drumming up fears of social service agencies closing, Rendell has used
SEPTEMBER 4, 2009 | Commentary by MATTHEW BROUILLETTE, JAKE HAULK
Pennsylvania’s Failed Economic Development Spending
State and local governments are locked in a constant competition to attract and retain businesses. Unfortunately, instead of addressing a poor business climate and flawed economic policies, they have increasingly relied on public subsidies in the form of grants, loans, tax incentives, and other blandishments.
Recent Blog Posts
MARCH 10, 2010
Grading Corbett's Economic Plan: FAIL
Pennsylvania governor candidate Tom Corbett and his campaign team unveiled the first of seven policy outlines on economic development.
Much of what it outlines is simply political rhetoric - i.e. praising energy resources, transportation and water infrastructure, agriculture, manufacturing, and innovation - but when it outlines specific policy proposals, it's just more of the same.
The Corbett plan includes:
- Spending taxpayer money on building broadband internet, copying the federal "stimulus"
- "Discovered in PA - Developed in PA" - a new program for universities and businesses to partner - presumably with taxpayer subsidy - on new technologies
- More tax incentives and state spending on venture capital - because, naturally, if private investors don't think something is a good risk, government will make better decisions using other people's money
- Loans and "seed money" for new businesses
- Grants and incentives for investors
- Getting more out of the Governor's Action Team, one of Rendell's favorite tools to pick favored companies for corporate welfare
- More programs to create green jobs
Rather than a new direction, Corbett offers nothing more than the same failed mistakes of the past. In fact, his corporate welfare package sounds a lot like that of Democrat candidate Dan Onorato, not to mention the policies of Rendell and Bush-Obama.
This is not our path to prosperity. For some positive ideas, check out Six Opportunities for Pennsylvania.
More from CF on Corporate Welfare.
posted by NATHAN BENEFIELD | 04:17 PM | 0 comment
FEBRUARY 16, 2010
Tracking the Bailout Money
Propublica has a good tool tracking all the money the federal government has given out in both the TARP bailout and the bailout of Fannie Mae and Freddie Mac.
Their data includes not only how much money institutions received, but how much money they returned. Interestingly, many banks and financial institutions (which Obama has proposed taxing) have returned all or a a significant portion of their bailout money. In contrast, the automakers and Fannie and Freddie have returned little or nothing--but they would be exempt from Obama's new tax.
posted by NATHAN BENEFIELD | 08:45 AM | 0 comment
FEBRUARY 15, 2010
Agriculture: Pennsylvania's #1 Industry (in Lobbying)
The lobbyist group Triad Strategies has a new blog focusing on Pennsylvania policy and politics, which features a recent post by George Wolff that calls for taxpayers to continue to subsidize agriculture.
Wolff repeats the oft-state myth - it may even be required by law for all public officials to say - that agriculture is our #1 industry. Wolff writes, "Farming and farm-related enterprises constitute the largest sector of Pennsylvania's economy."
This is not true, or even close to being true. Rather, agriculture is Pennsylvania's 22nd largest industry (out of 22) in terms of jobs, and 19th (out of 19) in its contribution to state GDP.
To even approach the largest industry, one would have to include not only manufacturing of farm machinery, material related to farming, but also every restaurant and grocery store in Pennsylvania. Thus, Wolff's justification that our "largest industry" relies on a few million dollars in state subsidies (including things like fairs and the Farm Show) follow this logic.
- Without subsidies, Pennsylvania farmers will stop farming.
- Once agriculture disappears from Pennsylvania, residents will stop eating at restaurants and buying groceries, and those industries will disappear as well.
Of course, this is ridiculous logic. Let me repeat what I wrote in a previous post on farm subsidies
Most economists agree that agriculture subsidies are not good for the economy, or even for farmers, and Cato gives the top ten reasons to cut farm subsidies. ...
The fact is that the average farmer receives little support from agricultural subsidies, most of these go to large corporate farmers and land-holders. ...In contrast, take the case of New Zealand, which ended all agricultural subsidies in 1984. Not only did their farm industry not collapse, it thrived like never before
posted by NATHAN BENEFIELD | 08:30 AM | 0 comment
