Tag: Paybacks

Continually feeding us the economic benefit angle of government intervention in free markets, leaders love to pad the wallets of their best buds in industry. To do so requires a "cause" however,as simply jacking the public treasury for personal gain is abhorrent to those on BOTH sides of the political divide. Climate change has become one of the easiest causes to gather around, because the science is so ambiguous, its been simply easier for governments to act and perhaps err on the side of caution.

So we promote and enhance business models that are designed to combat climate change with other peoples' money. Also included in these 'causes' is the argument that "new jobs are created" with the development of such technology.  Such was the case with A123 Systems:

"In 2009, A123 received millions in federal and state funds, for the creation of jobs for Michiganders. Taxpayers  unwillingly, or unwittingly saw their paychecks shrink for promises never realized, and now they may have ultimately subsidized a technology transfer to a competing world power."

But the cherry in the pie is something even more disturbing.  Adding insult to injury, the failure to produce promised results for taxpayer paid incentives and gratuity is now lining the pockets of the failed executives who apparently understand private public partnerships better than the rest of us.

Its a place where only the taxpayer loses:

"The top executives who presided over its failure - and supported the president's cap-and-tax initiatives early in his term - are likely to receive millions of dollars in bonuses, thanks to their scheming earlier this year and a bankruptcy court judge."

Everyone knows why she did it, but without the proper context, its hard to argue against such things as continuing pay for teachers who are "going to be laid off," or what it might actually cost us in the end.  A look at whether or not teachers might be laid off has been done before by Michael Van Beek in his Series for the Mackinac Center:

"Finally, union contracts dictate that school districts notify employees of potential layoffs prior to the end of the school year. As a result, many more "just in case" pink slips are issued than the actual number of layoffs. Not surprisingly, the warnings get more attention than their later non-execution. In fact, the actual student-to-employee ratio of 8-to-1 has remained unchanged over the last 10 years."

In other words the mewling by the MEA generally serves to win its its political game more than the practical ends, as the perennial situation has remained the same for a decade.