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Author
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Topic: Well, That Seems Fair (November 2001)
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Dave Thomer
Guardian of Peace and Justice in the Galaxy
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posted 11-11-2001 01:55 AM
   
The November Public Policy update is now online. |
Kevin Ott
True Believer
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posted 11-11-2001 01:56 AM
The relationship between corporate welfare and its potential benefits to society in general and the people that make up society in specific is one that I think deserves attention; it would be nice if we could develop more corporate financial assistance plans that result directly in benefits to the communities those corporations exist in.I mean, who knows. Government assistance to, say, pharmaceutical corporations might possibly free up funds for those corporations to use as grants to public television and radio. Then again, maybe not. And maybe the feds could eliminate the middleman by simply contributing more funds to public communications media themselves. Or, they could offer assistance to corporations based on a commitment to contribute funds or materials or even time to such a forum dedicated to the public good. Like a website, perhaps. Perhaps one geared toward discussions of public policy and popular culture. I’m just throwing out ideas here. In Pennsylvania, we have parcels of land called Keystone Opportunity Zones, which are places dedicated to vitalization and revitalization of local economies, where businesses can get tax breaks in exchange for locating their offices there. They stimulate employment locally and don’t decrease the local tax base to the point where the company that owns the land is a burden on the community, since most of the tax breaks are given by the state. A few less dollars in the state coffers is easier to make up than a few less dollars in the county or city coffers. I’m not sure if the Keystone Opportunity Zones (so named because PA is “the Keystone State,” apparently because all the good state nicknames were taken) are a good model, but they’re definitely a good idea. If something like them – a program wherein welfare assistance were given to corporate entities in exchange for those entities giving something back to their communities – could be designed on a grander level, and made to actually work in practice – well, we’d be on the road to Easy Street. Just make a right at the Taco Bell. And what the hell are “coffers,” anyway? You never see them for sale anywhere. |
Earl Green
True Believer
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posted 11-13-2001 01:21 PM
Keystone Opportunity Zones? "Wouldn't it be great if there was an opportunity zone? And what if it was a great-tasting opportunity zone?" Sorry, Kevin. Couldn't resist.The trick is to convince corporate entities to spend money on things which they may feel just have fringe PR benefits at a time when they're scrambling to keep it to the bottom line. As far as corporate welfare is concerned, I have been taking a somewhat harsher view of the issue, particularly where airlines are concerned. They hire their own employees for security, and want a federal bailout when their stocks take a plunge because no fewer than four passenger jets were hijacked in a single day? I'm tempted to say let 'em stew in their own juices. The last line of defense - which doesn't seem to have worked - was their responsibility, not the government's. I know we need the airlines for things that go beyond passenger flights, such as moving the mail, but I find it hard to be sympathetic toward them. |
Pattie Gillett
True Believer
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posted 11-14-2001 01:52 PM
First, in answer to points Earl and Kev raised, small businesses do have incentive to say, hire people who are coming off public assistance. At the store where my father works, the owner got big tax incentives to higher cashiers who were in that situation. I'm not sure of the intricacies of the program but I know that it has worked out well in their case.Here's my thing, not many people realize (or maybe they just don't feel like acknowledging) that getting public assistance as an individual is not exactly easy. You do have to jump through hoops and provide all kinds of documentation to prove that you and your family are in need. Sure there is fraud along the line but for the most part, most people don't want the stigma and the hassle of being on PA. Contrast that with the huge handout the government gave the airline industry following the attacks - no questions asked. No one examined the airlines' financials to make sure that the losses they were experiencing following September 11 weren't just compounding pre-existing management problems. No one put any limits on how much the airline execs could pay themselves during this time period (while laying off tons of people). We just wrote a check. I'm fine with the government assisting corporations when necessary but if you're going to demand that individuals prove their need, make the corporations meet that same standard and not simply as an industry - but one by one. |
Dave Thomer
Guardian of Peace and Justice in the Galaxy
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posted 11-15-2001 02:10 AM
Isn't there some sort of application procuedure individual airlines have to go through to get a grant from the large block of funds Congress appropriated? Granted, I don't know what the procedure IS, but I do believe there is one beyond 'Gimme some cash.' It probably is less involved than some forms of individual government assistance; on the other hand, I get a large tax credit every year just for paying tuition and don't really have to do much there. As I am a poor starving graduate student, there are probably some who would call this a form of government assistance, but I certainly think it meets the equivalent of the Reich test. |
Kevin Ott
True Believer
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posted 11-20-2001 02:30 AM
I'd like to think there is a somewhat demanding process, Dave, but here's the thing -- it's not terribly hard to believe there isn't. The relationship between the feds and transportation has always been a weirdly comfortable one (Amtrak doesn't have a whole lot of competition, and the House Transportation Committee has been known to have its back scratched more than once), and the bailout was quick enough to be considered reactionary, so I'm not sure the process for getting a handout is likely to be that grueling. |
Pattie Gillett
True Believer
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posted 11-26-2001 11:31 AM
I happened to catch an interview with an executive at Continental, who was instrumental getting the airline relief package from Congress in September. His argument - which probably swayed many lawmakers - was that without the airlines to help move people/goods around, the rest of the economy would take an even bigger hit down the road, possibly necessitating an even broader and more expensive economic stimulus package later. He also argues that when the government grounded all planes on September 11, they effectively blocked airlines from doing business so it made sense to make the aid package swift. He may have bee convincing, but I still would have liked to see some more requirements put in that package, because even he admits that many of the airlines that received the aid will end up failing anyway, but "at least we won't all fail." |
Dave Thomer
Guardian of Peace and Justice in the Galaxy
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posted 11-29-2001 01:59 PM
You know, I could see an immediate, no questions asked grant to replace the estimated cash lost from the period while the airlines were grounded. That actually makes sense. But this bailout was also intended to help make up for the financial hit the airlines would take once they were no longer grounded. And I still have no problem with that -- assuming that we exercise some sort of oversight over the process. | |
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