Corporate socialism for the politically connected

DAVID CAY JOHNSTON: Well, first of all, they say they offer cheaper goods. I don't accept that that's necessarily true.

But here's what happens. And this is a good example of where the news media hasn't done a good job. I have tons of news clips that say, oh, this new shopping mall is coming or a new Wal-Mart or a new Cabela's store, and thanks to tax increment financing, this store is going to be built. Well, what is tax increment financing? I'll tell you what it is. You go to the store with your goods, you pay for it at Wal-Mart, and there's a very good chance that that store has made a deal with the government that the sales taxes you are required to pay, that government requires you to pay, never go to the government. Instead, those sales taxes are kept by Wal-Mart and used to pay the cost of the store. And typically in those deals, the store is tax exempt, just like a church.
(...)
And I tell about a man named Jim Weaknecht who owned a little store in the Poconos of Pennsylvania. He sold fishing tackle, hunting gear, stuff like that. And the way he made his living in his little tiny store, enough that he was able to have his wife stay at home and raise their three kids full time, was by charging less than a company called Cabela's. Well, then Cabela's came to town. This little city of 4,000 people made a deal to give Cabela's $36 million to build a store. That's more than the city budget for that town for ten years. It's $8,000 for every man, woman, and child in that town to have this store. And even though he charged lower prices, he was pretty quickly run out of business.

That's not market capitalism, which is what Ronald Reagan said he was going to bring us. He said, you know, government's the problem, we need markets as a solution. Well, that's not the market. That's corporate socialism. And what we've gotten is corporate socialism for the politically connected rich—not all the rich, the politically connected rich—and market capitalism for everybody else.

Playlist:
http://www.youtube.com/watch?v=GfQDBjVhMzA&feature=PlayList&p=5EF4E9A...
Book:
http://books.google.com/books?id=iuKyGAAACAAJ&dq=david+cay+johnston+free+...
NPR interview:
http://www.npr.org/templates/story/story.php?storyId=17808622

Category:

News & Politics

Tags:

• walmart
• cabelas
• conservatie
• libertarian
• free
• market
• economy

[sswellrd03]

Thats ridiculous. Whats in it for the government?

[madashelldude]

nothing. campaign contributions to politicians. they call your taxes "dumb money" among themselves, just money up for grabs for their friends and family, no regard for the good of the people they supposedly represent.

[aduziproductions]

CORPORATE WELFARE: politicians "trickling down" money to their relatives, cronies and relatives of cronies who have helped in getting them elected in hopes of escaping their flea market booths by getting a government job that pays benefits and a pension.

[aduziproductions]

TIF department stores then provide minimum wage, part time jobs with out benefits and employs those who lost their real jobs to TIF's or out sourcing (see below). Money gained is then put to use building extreme wealth for the politically connected.

Once acquired the money is then spent on European Vacations or get away villas in Costa Rica.

[2cOthers]

Not only do these scammers want to keep the taxes collected, they want the government to pay for the water, sewage and other utility costs for the construction projects on their PRIVATE property - wealth for the international operators like the Waltons is increasing - while most Americans are struggling to stay out of poverty - the government in the town next me just vetoed one these "deals "

[dukewilleo1630]

Corporate socialism. It's the truth. Just look at the recent collapses of mega-corporations and their federal bailouts. AIG fails, we pay the bill.

[aduziproductions]

SOCIAL WELFARE : giving money to support the masses so they can spend it on collectable action figures, cigarettes and beer. Thus trickling it down to the middle class at their flea market booths that they now must man due to out sourcing.

Are you better off than you were eight years ago?

I'm Aduzi and I approved this comment.

[aduziproductions]

TAX INCREMENT FINANCING (TIF): Large sums of money collected from taxpayers and given to those who are politically connected. It is then used to build department stores in order to sell goods produced in countries with third world economies where advantage is taken of cheap labor and resources, companies pollute at will and are not subject to any encumbering restrictions. (ie..Bhopal disaster)

[Socialgreenman]

Most people don't understand that political government works for the interest of the capitalist. We get some representation. Marx wrote that Capitalist have their own socialism to preserve capitalist society. They created social programs to keep the population pacified. Ever hear a socialist exclaim, "Let's end capitalism."? I am one who does and we can create new economics through an organization of labor while the political government protects OUR civil rights and liberties. Both are separate.