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Sunday, December 04, 2016

Phony cries of crony capitalism

President Trump's saving 1,000 Carrier jobs over the Thanksgiving holiday has opened mine eyes. I thought this was a two-inch putt, but no, the Never Trump crowd and some Trump supporters are crying Crony Capitalism, which is like calling the word blackmail rayyyyyyycist.

Crony Capitalism? Well at least they admit it is capitalism.

President Trump is not a crony of Carrier or its owner United Technologies.

The company was not a donor he has to pay back.

Federal taxpayers are not giving the company a dime. Tax breaks -- deductions -- merely mean the company keeps more of its revenue. I thought conservatives wanted taxes lowered to stimulate the economy.

Indiana's economic development people are kicking in some money. That may be state tax money or it may not be. Some states gave their economic development people an early grant, which they now live off as companies helped in the past pay back low-interest loans.

But Trump is not engaged in a shakedown -- as the Wall Street Journal said -- nor crony capitalism, as Bill Kristol and a host of other fools put it.

President Trump is engaged in saving the economy, which is still based on manufacturing, agriculture, and extraction (mining and drilling) -- and not media and government.

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15 comments:

  1. Big D, LOVE the two inch putt comment! Great visual and spot on analogy. You can write, brother!

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  2. Don, I want to share my comment on Instapundit yesterday. As you know, I was a Village Administrator until I retired in June of a town that has a population of 4,300 but about 5,000 manufacturing jobs. That didn't happen by accident. Here is my comment - great minds, etc.

    I hate like hell to disagree with Palin, but that's just ignorant tripe. Anybody who has worked in economic development knows these kinds of deals are made every goddam day to retain and create new jobs. Besides, it's Indiana's business if they want to give $7 M in tax credits, and nobody else's. And don't try to tell me that's "taxpayer money". That's bullshit. Taxpayer money is when the gubmint takes money it already has and gives away grants to build solar cells or wind farms or some other useless bullshit. A tax credit is money the gubmint has not collected yet, and does not own. THE MONEY IS NOT THE GUBMINT'S, IT'S CARRIER'S!

    Besides, state tax credits, from a state, like all of them, that has to balance its budget every goddam year is a decision made on budgetary priorities. To boot, you can't miss what you never had. How much tax revenue would Indiana collect from Carrier if it were in Mexico? Big fat goose egg!

    And I will repeat this one more time for those who don't pay attention to the facts of life. Trump didn't issue the Indiana tax credits. What he likely did, in a polite meeting over coffee, was remind UTC that one of their other divisions has about $7 B worth of very lucrative defense contracts with the federal gubmint and wouldn't they like to keep Uncle Sugar happy?

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    1. Thanks Dennis. As you know, I treasure your readership. Very insightful. I overlooked the balancing of the budget. That will be corrected later. Palin gave away a windfall as a rebate to all Alaskans in an attempt to keep voters happy. Investing in infrastructure made more sense. Yes you need roads and sewers and schools.

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    2. As you know, Don, it was tough for me to vote for Trump. I'm not a bitter person, though, and I give credit where due. If he continues as he has begun, he'll do well.

      Indiana wisely, IMHO, felt the benefits of having Carrier stay was worth not collecting $7 M in tax revenue. They will get that much back in a multitude of ways. An old rule of thumb for economic development people is that residential development recovers 50 cents in taxes for every public dollar spent providing infrastructure and services. Retail and commercial are a wash at a buck in and a buck out. Manufacturing, however, pays $1.50 in taxes for $1.00 the gubmint spends on it. I'll take a 33% profit any day.

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  3. The Donald, he on a ROLL. By the time he takes office, he'll be up to speed (SPEED, do you hear?).
    He'll have MOMENTUM.

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    1. ...and he'll already have made more positive changes than his predecessor managed in 8 LONG years, to boot. ;-)

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  4. Negotiating to save jobs for a product that is needed by consumers is not fake/crony capitalism. It's negotiating a deal.

    The government producing wind electricity that consumers do not want is crony capitalism.

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  5. How many of these whiners (or weiners) complained about cities building billion dollar stadiums so spoiled athletes can collect multi million dollar salaries and then complain about discrimination and billionaire owners can get richer at taxpayer Expense? If they never complained about that then they are not really serious now. It is just another never Trump tactic that will fail.

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  6. Bet the whiners don't complain about the tax credits and writeoffs given to sports teams to build new stadiums for million dollar players. And it is not just 1000 people with the jobs but a whole lot of other people dependent on those jobs - families, truck drivers, shop owners, education, etc. Guess they don't care about those as well.

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  7. Palin is now officially done. Watch for her to begin pandering to the left.

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  8. Has Palin been hanging out with Old John again? She is talking dumb like he does.

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  9. Hillary puts the crone into crony capitalism.

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  10. It is an amazing thing to find someone in national office that puts the interests of the USA and its citizens before the interests of foreigners.*

    I am still reveling in the wonder of that.

    *Note: I made this statement (or variations on it) many times here and elsewhere (Instapundit) since summer of 2015.

    -Mikey NTH

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  11. Just simple calculations in my head, but that $7 million is about the same as paying funemployment to those same workers for two years.

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  12. Trump has done what should have been done long ago when the businesses begin flowing out. Reduce the tax burden. "Conservatives" are quick with their "creed" - because Trump refuses to be wefdge into their mold of a true conservative, yet there is no creed of "being a conservative, except all the things they expect you to say or do. Reaagan didn't either, and they were all over him. He forged on, and is now their godfather of conservatives.

    They are of no use to anyone. jb

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