While Matt Brouillette and Rep. Mike Turzai offer criticism of Rendell’s scheme, the Governor offers several defenses for Pennsylvania’s economic development spending (despite evidence that it doesn’t work) that deserved to be responded to … and ridiculed.
Rendell: ”If you’re a high-debt state, like California for example, then borrowing is a bad idea, If you are low- to moderate-debt state like us, that needs to invest in its economy and infrastructure, then it’s a good idea.”
So we should borrow more simply because we need to have more debt?
Rendell: ”There is no question that Philadelphia would not have turned around without state investment.”
“Turned around”!? You mean to tell me that the city wasn’t losing jobs and losing population before Rendell’s economic development plan was put in place? That isn’t the kind of “turn-around” we should be looking for.
Rendell: ”Name me one business that’s a success that didn’t borrow money to invest in its own growth. You can’t.”
Microsoft. But even so, generally businesses have borrowed money before becoming profitable. However, I would challenge Rendell to name one state that has borrowed its way to prosperity.
Furthermore, Governor Rendell’s logic fails to justify corporate welfare. In fact, businesses should borrow money to invest their own growth. They should not depend on handouts from Governor Rendell. Only unsuccessful businesses rely on taxpayers to prop up their bottom line, not private investors.