High atop a hill in Birmingham, Ala., stands a statue of Vulcan. With a spear raised in his right hand, the Roman god of fire and the forge makes an imposing figure — one that remains the tallest cast iron statue in the world. In 2001, however, he was less a symbol of the Alabama steel industry than of questionable government spending. Over a two-year period, $3.5 million in federal funds were spent overhauling the titan — to the point that fiscal hawk John McCain issued a tongue-in-cheek demand: “Not one more federal dollar to promote tributes to pagans!”
Unfortunately, the proper lesson has not been learned. For the people of Alabama the level of largesse has only grown. Last week, The Wall Street Journal reported that ThyssenKrupp, a German manufacturer, decided to sell the largest, and newest, steel plant in America. It cost $5 billion to build and has been open for less than two years. The state of Alabama gave the company $1 billion in subsidies — most of which is now gone for good. That’s a lot of money. That’s crazy money. Which raises the question: How much crazy will it take for this kind of silliness to stop?
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And, which political party runs Alabama??
Why does that matter? Do you view everything through a partisan lenses?
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Great column, John. Books could be written of all the government sponsored corporate examples that litter our state and local governments. But the greater truth is that when the government steps in, corporations are free to takes risks that they would not take with their own money. After all, if Solyndra was such a great investment, private investors would have come in. They did not, for the most part. Our tax payers took all the risk, and Solyndra was happy to let us. I had never heard of this Steel facility in Alabama, but it is the same story-government took the majority of the risk, so the private company could take a chance.
Exactly why the $45 million tax breaTito Liberty Mutual, and the Scott subsidies of selective companies in the seaport is a big mistake.
Mr. Sununu, you are so right. What governors need to do is to reform their public schools and enhance their community colleges. If your state can offer educated and skilled labor, many employers will come. Offering generous welfare payments like California does is not the way to go.
John, please go to Alabama and fix it. Maybe someone there actually wants to hear the drivel of a man who was only elected on his father's coattails and who was returned to private life after a single term for failing to represent his own state.
If only Alabama consulted with Sununu the Magnificent and his crystal ball they would have been aware there was a horrendous financial crash on the way (which happened on his party's watch). Hindsight vision is 20/20. His expert advice would be to do nothing, which agrees with the party of nothing, the GOP. All the various historical investment by the government, including infrstructure, electrification and other programs are all waste, in his opinion.
Obama wasted $5 trillion in three years, more money than the next four presidents combined, and look around: we got absolutely nothing for the $5 trillion wasted! Absolutely nothing! Obama could not have delivered worse results than if he had tried to!!! Get Obama out of there!!!!
After the crash of 2008, you could have been selling apples on the street corner, but maybe you menmory doesn't go back that far.
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The green god requires tithing. Thank you, Mr. Sununu. It's unfortunately all about greed and graft. Massachusetts' green companies' bankruptcy filings have left citizens on the hook for multi-millions. Evergreen Solar's $59 million in state aid is public debt with 800 fewer jobs. Beacon Power had a $43 million DOE loan backed by the public. Konarka Technologies received $5 million in financing in the form of a long-term loan from the Emerging Technology Fund and Massachusetts Renewable Energy Trust’s Business Expansion Initiative. Beacon got $20 million in grants from government agencies including the DOE and the Pentagon. MA green ventures A123 Systems' and American Superconducter's intelligence is now in China's hands as paid for by MA and US citizens. "How much crazy will it take for this kind of silliness to stop?" Follow the public subsidies to > Flodesign- http://bjdurk.newsvine.com/_news/2012/03/27/10889807-Massachusetts-green-bubble-alert-flodesign TPI Composites- http://bjdurk.newsvine.com/_news/2012/06/03/12037051-massachusetts-green-bubble-alert-tpi-composites Konarka Technologies- http://bjdurk.newsvine.com/_news/2012/06/04/12049396-massachusetts-green-bubble-alert-konarka-technologies-inc Wind Turbine Blade Testing Center- http://bjdurk.newsvine.com/_news/2012/04/12/11165394-massachusetts-green-bubble-alert-wind-turbine-blade-testing-center UPC First Wind- http://bjdurk.newsvine.com/_news/2012/04/01/10888055-massachusetts-green-bubble-alert-first-wind American Superconductor- http://bjdurk.newsvine.com/_news/2012/04/12/11167741-massachusetts-green-bubble-alert-american-superconductorassachusetts A123 Systems- http://bjdurk.newsvine.com/_news/2012/03/27/10887207-massachusetts-green-bubble-alert-a123-systems-aone Mass Tank partners with Goldwind of Xinjiang, China- http://bjdurk.newsvine.com/_news/2012/03/27/10888647-massachusetts-green-bubble-alert-mass-tank-partners-with-goldwind-of-xinjiang-china EnerNOC - http://bjdurk.newsvine.com/_news/2012/04/07/10891513-massachusetts-green-bubble-alert-enernoc
The cut-and-paste-queen strikes again.
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Of course, there have also been many successes. Sununu doesn't mention those. The South is poor compared to the Northeast, and needs good-paying jobs. It's no wonder that politicians try to help their constituents. Any investment in business is a gamble, but what about several foreign auto plants in the South and a General Motors plant in Tennessee -- all originally subsidized and providing thousands of jobs.
I agree that ideally such breaks shouldn't be necessary, but they often are. One failure doesn't negate the whole concept. We give breaks to sports teams, and a lot of cities end up with white-elephant stadiums.
You try. That's all you can do. You win some, and sometimes you lose.
I'm sorry to say that I've never read anything by Sununu that wasn't full of illogic and very selective anecdotal evidence. I feel like kicking myself because I wasted my time reading it.
It's not a matter of right or left, conservative or liberal. It's a matter of illogical thinking and laziness.
I always get the same physical reaction when John writes something. - Yawn.
When is the Gobe going to give this buffoon the hook.
When is the Gobe going to give this buffoon the hook.