Hope and Change in Action: How government-directed business stimulus looks like
Today's Financial News - Posted February 5, 2009
Annapolis just gave us a sneak peak into the realities of one-party business stimulus. We can’t wait to see it applied nationwide!
by J. Christoph Amberger
Let the good times roll!
Baltimore—TFN: The State of Maryland just provided a text-book example of how government will create jobs.
You see, for years the racetracks in Maryland have been suffering. Operators lobbied for slot machines to add to the dwindling attractiveness of playing the ponies. The one Republican governor we had for four years agreed with them, but was routed as too “pro-business” by the dominant liberal culture who considered slots exploitative of the poor and old.
Until they had re-established one-party rule in Annapolis again, that is.
Suddenly, under the new governor (who had opposed slots as mayor of Baltimore), slots became the indispensable key to funding schools and social projects, damn the exploited poor and old.
Earlier this week, businesses were allowed to pay multi-million dollar filing fees to submit their proposals… $3 million for every 500 slot machines they bid on.
Problem was there were only a handful of bids—for just 6,550, out of 15,000 slot machines authorized in last November’s slection. Two of the five companies placed their fees in escrow, contingent on approval of the required permits once licenses were granted. Out of reach of needy state officials.
“Lawmakers in Annapolis reacted with disappointment,” wrote the Baltimore Sun. They had counted on (and redistributed) $600 million in annual slots-related tax revenues.
What could’ve possibly gone wrong?
I wonder if it had anything to do with the 67% tax rate they promised. Or the enormous capital investments required under state law. Or that the restrictions on locations exceeded those applied to nuclear reactors and leper colonies.
How could business not salivate at the opportunity to take huge risks, jump through hundreds of hoops, and hand over two thirds of their earnings to their reluctant bureacrat benefactors?
I know what was missing to make this an offer these companies can’t possibly resist: Why not add regulations to allow only union labor in the casinos? Force businesses to buy supplies and materials locally? Prohibit traffic by fossil-fuel powered vehicles to and from the venue? Limit management’s travel options to Amtrak? And, most importantly, cap executive compensations?
I can’t wait to see this plan adopted nationwide for all industries… and advertised as “emergency stimulus registration”.
Opposition to this would clearly be un-American.
After all, 60% of the American electorate voted for change.
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