Last night, the City of Asheville approved a cornucopia. Linamar will be receiving an economic development incentive from the city valued at $2.2 million. This is in addition to the $10 million promised by Buncombe County in grants. In addition, the county purchased the building for Linamar to hold it off the tax rolls until the company is ready to move in. Linamar will also receive waivers of inspection and permitting fees. The state is throwing in two “functioning” traffic lights – as opposed to the one I have to avoid on the way to work in the morning because it never turns green.
Anyway, the investment has government people all excited. The new mantra is “$125 million invested with 400 jobs created.” Mayor Terry Bellamy assured the public all the jobs would be new jobs, and that the taxpayers won’t be subsidizing a dime. The city’s incentive will come as 90% rebates off taxes Linamar would have paid in its first five years of operation. That’s a net gain for the city!
Only Cecil Bothwell wasn’t caught up in the magic. He asked if Linamar would not be receiving municipal services, like fire protection, during those five years. Of course it would. And all other businesses would be paying 100% of the supposed cost for those services. Bothwell didn’t argue. His peers had too many stars in their eyes of, for example, jobs multipliers creating two or three jobs for each of the 400 jobs created by Linamar. Linamar would become a pillar of the community. It would be one of the greatest employers in the area.
Back on earth, where budgets still have expenditures as well as revenues, Bothwell further expressed disdain at the city having to compete for business by dangling enticements. He didn’t care if everybody else was doing it, somebody, somewhere had to say enough.
Everybody was happy that government would be creating jobs. Nobody was socialist or fascist. They just thought government (at best control and power, in practice bureaucracy and waste, and at worst tyranny and horror) should create jobs. Everybody but Bothwell thought it was nifty-keeno that tax revenue from subducting established businesses could support the new kid in town.
Unfortunately, Bothwell spoke as if capitalism, and not crony capitalism, was the enemy. If a group of people choose to take advantage of economies of scale to produce at a profit interchangeable parts that society deems helpful, so be it. The problem is when corporations swing sweetheart deals with the powers that be to secure competitive advantage over other producers who are trying to stay in business with superior output.
During the invocation (which has been politically redefined to mean “recitation” lest an absence of God be offended), Bothwell blasted corporations as being greedy and setting up an aristocracy. Citing quotes from the Founding Fathers, he told how corporations had the potential to undermine the Republic. Bothwell praised the presidents Roosevelt for their anti-corporate actions.