Feeds:
Posts
Comments

Archive for the ‘Economy’ Category

Good Jobs First, a Washington, D.C.-based national policy resource center, has released an extensive study entitled Megadeals: The Largest Economic Development Subsidy Packages Ever Awarded by State and Local Governments in the United States.

Louisiana, with giveaways totaling $3,169,600,328, ranked sixth behind New York, Michigan, Oregon, New Mexico and Washington in the total dollar amount of so-called megadeals, the report shows, $65 million more than much-larger Texas, which had $3,104,800,000.

Louisiana, with 11, tied with Tennessee for fifth place in the number of such budget-busting deals behind Michigan’s 29, New York’s 23 and 12 each for Texas and Ohio.

The report, authored by Philip Mattera and Kasia Tarczynska, is somewhat dated in that it was published in 2013 but it still offers some valuable insights into how states, Louisiana in particular, was more than willing to give subsidies worth millions upon millions of dollars to corporations in the name of new jobs that rarely, if ever, materialized.

The subsidies included in the report, it should be noted, do not include tax incentives, which is another type of inducement. Accordingly, Wal-Mart, which has received more than $1.2 billion in total taxpayer assistance, is not included because its deals were worth less than $75 million each. Good Jobs First has documented giveaways to Wal-Mart in a separate report.

The single biggest example of corporate socialism contained in the report is the 30-year discounted-electricity deal worth an estimated $5.6 billion given by the New York Power Authority to Alcoa. In all, 16 of the Fortune 50 corporations (excluding Wal-Mart) were included as recipients of the report’s megadeals.

The biggest single deal for Louisiana—and the fifth-biggest overall—was the $1.69 billion subsidy in 2010 for Cheniere Energy in the form of property tax abatements and other subsidies for the Sabine Pass natural gas liquefaction plant. That project, the report said, created 225 new jobs—a cost to the state of more than $7,500 per job, the largest single cost-per-job project contained in the report.

Shintech, received a 2012 deal worth $187.2 million in subsidies to the company. That project was said to have created 50 new Louisiana jobs at a cost of $3,744 per job.

One of the biggest recipients of governmental largesse since the year 2000 has been General Motors with more than $529 in subsidies nationwide. Yet, it was General Motors who pulled up stakes pulled up stakes in 2012, leaving upwards of 3,000 former employees without jobs.

The megadeals cited by Good Jobs First in its report were dwarfed, however, by the seemingly insane subsidies given to banks and investment firms since 2000.

Of the top 21 recipients of bailouts by the federal government, the smallest was that of a company most probably never heard of: Norinchukin Bank, a Japanese cooperative bank serving more than 5,600 agricultural, fishing and forestry cooperatives from its headquarters in Tokyo—and it received $105 billion (with a “B”).

That’s nothing when compared with the heavy hitters. In all, 12 foreign corporations received loans, loan guarantees or bailout assistance from a generous federal U.S. government, led by the $942.7 billion received by the United Kingdom’s Barclays.

But Barclays ranked only fifth in terms of subsidies received in the form of federal bailouts:

Consider, if you will, the top four:

  • Bank of America $3.5 trillion;
  • Citigroup $2.6 trillion;
  • Morgan Stanley $2.1 trillion;
  • JPMorgan Chase $1.3 trillion.

All of this, of course, was the direct result of deregulation pushed by a congress whose members were supported by generous campaign contributions from CEOs, officers and stockholders of those very firms.

And yet we have elected officials—and citizens—who dare to rail against so-called welfare cheats, the costs of illegal immigrants, and the costs of health care for the poor.

These are the same people who wring their hands at the cost of social programs yet justify the expenditure of billions of dollars per day in military contracts to campaign contributors to support wars with no apparent objective (other than political payback) and with no end in sight.

These are the same ones who look us in the eye and tell us they support free market capitalism.

But pure capitalism doesn’t give away the public bank in order to entice some company that was probably coming to your state anyway. After all, if Louisiana truly has all these rich oil and gas deposits (and it does), does anyone really believe the oil and gas companies are going to locate their refining plants and pipelines in Idaho in order to mine for Louisiana’s resources?

You can check that box “no.”

What is the logic behind subsidies to lure an industry just so it can exploit cheap labor? Wouldn’t it be smarter to invest in public education and higher education so that our citizens might be capable of demanding higher wages for their knowledge and skills? Why would we opt to perpetuate the cycle of poverty by sacrificing taxpayer dollars to the advantage of some faceless corporation who cares not one whit for our citizens?

Free market capitalism doesn’t reward corporations with these kinds of subsidies while the recipients are simultaneously sending job oversees, depriving Americans of job opportunities.

Pure capitalism would dictate that each and every business in America succeed or fail on its own merit, without having to depend on governmental handouts.

Anything else has to be considered as something akin to (gasp) ….socialism.

But insisting on capitalism for the poor and socialism for corporations and the wealthy is a formula for disaster if ever such formula existed. The two philosophies are simply not compatible

And you will never get that lesson from the disciples of Ayn Rand.

Read Full Post »

No sooner had The Donald pulled off the biggest political upset since dewey-defeats-trumanthan the speculation on who would hold which cabinet position had begun. And it got downright scary.

There was former New York City Mayor Rudy Giuliani being touted as Attorney General.

Yep. That’s all we need: A doddering old has-been who has all he can handle to remember his own name standing in as the premier legal authority in the land. He’s probably the only one who could make John Mitchell look good.

And Newt-for-God’s-sake-Gingrich as Secretary of State?

And the Republicans thought Hillary was bad in that role?

Next thing you know, Trump will be tossing out Charles Koch’s name as Secretary of the Interior.

And how about Chris Christie as Secretary of Defense?

Or Kansas Gov. Sam Brownback as Secretary of the Treasury? I mean, look what he’s done for that state’s finances.

But according to The Wall Street Journal, in a story quickly picked up by state media, a familiar name (to Louisianans, that is) is being pitched as a potential choice for Secretary of Health and Human Services.

Bobby Jindal.

Are you kidding me?

Apparently not. http://www.wdsu.com/article/report-former-gov-bobby-jindal-being-considered-for-cabinet-role-in-trump-administration/8263712

For some reason the locals believe that because he worked for former Gov. Mike Foster as Secretary of Health and Hospitals and for former President George W. Bush as a special adviser to the Secretary of Health and Human Services, he somehow has a shot at a similar role in the Trump administration.

I would refer those reporters to chapters 30 through 37 of my book Bobby Jindal: His Destiny and Obsession. Those chapters include the sordid details of how Jindal single-handedly dismantled the state’s model public teaching hospital system to benefit a few greedy political hangers-on—even to the point of signing off on a contract containing 50 blank pages. A rhetorical question: would anyone reading this ever sign his or her name to any document containing even one blank page?

As an added bonus, I would refer you to Chapter 17 of the book which details how Jindal’s Commissioner of Administration Kristy Nichols landed a cushy lobbying position with Ochsner Health System after helping negotiate a deal whereby Ochsner would partner with Terrebonne General Medical Center to take over operation of the state’s Leonard Chabert Medical Center in Houma.

At least the WSJ thought to mention failed GOP presidential hopeful Dr. Ben Carson as also being under consideration for the Health and Human Services post.

That would, after all, make a little more sense. After all, Carson did pipe up from time to time on behalf of Trump’s candidacy. We heard nary a peep from the Louisiana wannabe wunderkind Piyush Jindal after he removed himself from the Republican presidential sweepstakes last November…and no one noticed (of course they didn’t notice while he was running, either). All he did was join the board of some Texas corporation and quickly fade from memory—helping the Republican Party but crushing my book sales in the process.

Hey, Donald, here’s a heads-up. After Tuesday’s race for the U.S. Senate seat being vacated by David Vitter, there are two former U.S. Representatives who ran unsuccessfully for the upper chamber who are now unemployed.

And they both just happen to be doctors.

But how can you trump (pun intended) a Rhodes Scholar?

If James Comey wasn’t doing such a splendid job, you might even consider Louisiana State Police Superintendent Mike Edmonson to head up the FBI. Think how regal he’d look sitting behind old J. Edgar’s desk.

But while you’re at it, you may be needing a new Secretary of Immigration and Border Protection. We understand David Duke just pulled an astonishing 3 percent of the vote in that same U.S. Senate race and may be looking for something to do. And we already know the rapport he has with minorities. Why, he’d fit right in.

And while you’re at it, you may be on the lookout for someone to replace Jeh Johnson as Secretary of Homeland Security.

There’s this fellow who previously did such a stellar job running the Louisiana Office of Alcohol and Tobacco Control—into the ground. Troy Hebert did even worse than Duke, racking up a whopping .5 percent of the vote in the 24-person Senate race. That’s one-half of one damn percentage point. Imagine what he could do for Homeland Security.

He may even still have his badge from his ATC days.

Yep, Donald, if you’re looking for washed up political has-beens to lead your administration—and it appears that you are—we have a boatload of ‘em down here in Louisiana.

Take your pick.

Please.

(Apologies to Henny Youngman.)

Read Full Post »

You may have seen one or more of a series of http://www.vote-4-energy.org/ television ads by the American Petroleum Institute (API) that have been running on a more regular basis than lawyer commercials recently.

Intended to give us a warm fuzzy feeling about Big Oil, it’s no coincidence they’re airing in an election year.

The primary trade association of the oil and gas industry, API boasts nearly 400 members. http://www.polluterwatch.com/american-petroleum-institute

Though it spent only about $200,000 on the 2012 election, it literally pours money into other programs—$33 million on lobbying between 2008 and 2012—and was instrumental in funding a $27 million anti-science “scientific” study to refute research linking benzene to cancer.

API was also not above embellishing job creation claims, touting 20,000 new jobs as opposed to the 6,000 estimated by the U.S. State Department and Cornell University.

API also donated money to the National Science Teachers Association for distributing a short film promoting the petroleum industry. http://www.sourcewatch.org/index.php/American_Petroleum_Institute#Concerns_about_API-funded_research

If there remains any doubt to the underlying intent of the recent glut of ads, a leaked memo written by API CEO Jack Gerard in August 2009 revealed that a number of trade groups, including the U.S. Chamber of Commerce and the National Association of Manufacturers, coordinated “Energy Citizens’ rallies in key Congressional districts in an effort to ramp up political opposition to climate and energy legislation.

Directly funded and organized by API and member companies, the “rallies” were coordinated by oil lobbyists and API member Chevron even bused it employees to events.

API also contributed $25,000 to Americans for Prosperity, the Tea Party organization founded and chaired by billionaire oilman David Koch. http://www.opensecrets.org/news/2012/03/energy-industry-trade-groups/

Which brings up Koch Industries, headed by David and brother Charles, both major players in the American political arena.

In just one state for example, Texas, the Kochs are proving our repeated position that money has supplanted the importance of voters in influencing election outcomes by dumping money into the campaigns of 66 candidates—15 for the U.S. House of Representatives, three for the Texas Supreme Court, 31 for the Texas House of Representatives, 16 for the State Senate and one for the State Railroad Commission (the Texas equivalent to the Louisiana Public Service Commission).

Here is a complete state-by-state listing of Koch-supported candidates (Note: only legally-required reported contributions are listed but Koch, in addition to monetary contributions has been known to exert pressure on its employees as to which candidates they should support.

And it’s not as if the Kochs are alone, nor is this an effort to say that only Republicans are beneficiaries of the avalanche of campaign funds that has occurred since the 2010 Citizens United decision by the U.S. Supreme Court opened the spigot of campaign cash.

Politics has become a game played by any billionaire with an agenda—to the overall detriment of the average citizen, whose numbers comprise 99.9 percent of the nation’s population. https://www.washingtonpost.com/graphics/politics/superpac-donors-2016/

So just how much Super PAC money, so-called outside spending (which does not include individual contributions to thousands of candidates in federal, state and local elections), was lavished on behalf of or in opposition to candidates in the 2012 elections?

The 1,310 super PACs raised $828.2 million for the 2012 election cycle, which was just two years after Citizens United, and spent $609.4 million. https://www.opensecrets.org/outsidespending/summ.php?cycle=2012&chrt=V&type=S

This year, in the Presidential, and Congressional elections alone, spending has already surpassed $1.8 billion. Of that amount, more than $248 million has come from PACs. http://www.economist.com/blogs/graphicdetail/2016/03/daily-chart-1

Before all is said and done, it is expected that more than $5 billion will be spent on the Presidential election. That figure includes money to be spent by candidates, political parties and outside groups (PACs), and includes money spent on presidential primaries—more than double the cost of the 2012 campaign.

All of which raises a moral question: if political donors are so civic-minded (as most insist they are) as opposed to an eagerness to promote a personal agenda (as most will go to great lengths to deny), why don’t they put their money to use for an even greater good?

Has it ever crossed the minds of the Kochs or any of the other members of the mega-rich influence-purchasers what even a small portion of that kind of money would mean to St. Jude or other children’s hospitals?

Have they ever considered underwriting cancer research on such a scale? What about feeding the hungry or even helping restore the country’s crumbling infrastructure? After all, they use the same highways, rely on the same water and sewer services, depend on the same police and fire protection.

So much good could be accomplished with the billions of dollars that are wasted on the campaigns whose promises are as empty and meaningless as the hopes and dreams of the poorest of our poor?

Yes, the Kochs give millions to charities but then spearhead coalitions of businesses and industries that pour hundreds of millions into efforts to pass anti-environmental legislation or they endow chairs at schools like Florida State University on condition that they get the final say in the hiring of faculty members who will teach their political and economic philosophy.

http://www.theatlantic.com/education/archive/2015/10/spreading-the-free-market-gospel/413239/

But we as a nation have somehow seen a trend away from using our wealth to accomplish the greater good for all our citizens. Instead, we’re seeing the wealthiest using their monetary buying power to purchase influence so they can accumulate even more wealth.

And we wonder why there is an ever-widening disconnect from the American political process.

Read Full Post »

Three book signings have be set for my latest book, Bobby Jindal: His Destiny and Obsession.

Our first book signing will be this Saturday at 2 p.m. at Cavalier House Books in Denham Springs’ Antique Village. It’s the same store where I held my first book signing for my first book, Louisiana Rocks: The True Genesis of Rock & Roll.

Also on hand for this Saturday’s signing will be Del Hahn, author of Smuggler’s End: The Life and Death of Barry Seal. Hahn is the retired FBI agent who successfully pursued Seal. I had a small hand in the book as editor.

Before we go any further, it might be worthwhile to point out that my book about Jindal is not a powderpuff book in the mold of the two books by Jindal which probably resulted in his dislocating his shoulder from repeatedly patting himself on the back.

Please know that this book was undertaken and written in its entirety with zero collaboration or cooperation from anyone in the Jindal camp.

It’s the kind of book that result in my being removed from Jindal’s Christmas card list—had we ever been on that list, which we certainly were not.

This 294-page book is an examination that addresses several issues:

  • How did Jindal become a multi-millionaire after only three years in Congress?
  • Jindal’s claims of a new high standard of ethics are debunked by his own actions as governor.
  • Jindal’s claim of transparency is also belied by his penchant for secrecy.
  • His vindictive nature in firing or demoting anyone and everyone who dared disagree with him.
  • His awarding of prestigious board and commission memberships to big contributors.
  • His sorry record in protecting the state’s environment and the state’s coastline.
  • His mysterious deal to sell state hospitals via a contract containing 50 blank pages.
  • His single-handed destruction of higher education and health care.
  • His near-comical, yet pathetic candidacy for the Republican presidential nomination.

There is much, much more, of course, but you will have to get the book to read it.

Here is the current schedule for upcoming book signings:

  • Cavalier House Books in Denham Springs: Saturday, May 14, at 2 p.m.
  • The Winn Parish Library in Winnfield: Thursday, May 19, at 2 p.m.
  • Barnes and Noble Bookstore in Mandeville, Saturday, June 18, from 2 to 4 p.m.

This schedule will be updated as additional signings are scheduled.

Read Full Post »

You just have to love Louisiana politics.

It’s kind of like having someone pee down your back while telling you it’s raining.

Or maybe trying to run a marathon with a rock in your shoe.

And to no one’s real surprise, it doesn’t seem to matter much which political party is in power.

Take Thomas Harris, the newly-appointed Secretary of the Department of Natural Resources (DNR), for example.

On Feb. 19, not quite two weeks ago, Secretary Harris testified before the House Appropriations Committee about the agency’s fiscal year 2017 budget. In his testimony, Harris, who spent about a dozen years at the Department of Environmental Quality (DEQ) before his Jan. 26 appointment by Gov. John Bel Edwards, lamented the fact that his agency was so strapped for funding that up to 66 employees face layoffs come July 1.

While it may difficult for some to feel much compassion for DNR, given the historically cozy relationship between the oil and gas industry and the agency’s top brass. It was DNR and DEQ, after all, which conveniently looked the other way all these years as our coastal marshlands were raped by the industry that curtailed the so-called legacy lawsuits filed against oil companies that neglected to clean up after themselves. http://theadvocate.com/home/9183574-125/house-oks-legacy-lawsuit-legislation

http://legacy.wwltv.com/story/news/2014/12/10/tainted-legacy-legislatures-fixes-create-obstacles-to-oil-and-gas-cleanup/17671639/

Harris gave his testimony during the afternoon session of the Appropriations Committee that met during the recent special legislative session called to address major budget shortfalls.

To save you some time, open the link HERE and move to the 41-minute mark. That’s where Harris begins his address to committee members, most of whom were talking among themselves (as is the norm) and not really paying attention.

So just why are we making such a big deal of this? It’s no big secret, after all, that budgetary cuts are hitting just about every agency and employees are going to have to be laid off. It’s a fact of life for anyone working for the state these days.

Unless you happen to be named David Boulet or Ashlee McNeely

Harris hired Boulet as Assistant Secretary of DNR, effective March 10 (last Thursday), less than three weeks after his calamitous testimony about projected layoffs.

But get this: Ashlee McNeely, wife of our old friend Chance McNeely (we’ll get to him presently), worked in Bobby Jindal’s office from Feb. 3, 2014, until last Oct. 22 as a legislative analyst at $78,000. On Oct. 23, she was promoted to Director of Legislative Services at the same salary (someone please tell us why Jindal needed a director of legislative services when he had less than three months to go in his term—and with no legislative session on the immediate horizon). Of course, come Jan. 11, the date of John Bel Edwards’ inauguration, she was quietly terminated along with the rest of Jindal’s staff.

But wait. Harris decided he needed a “Confidential Assistant.” And just what is a “confidential assistant,” anyway? Well, we’re told that the term is loosely translated to “legislative liaison.” No matter. Harris did the only logical thing: he brought Ashlee McNeely on board on Feb. 10, just nine days before his cataclysmic budgetary predictions. What’s more, he bumped her salary up by eight thou a year, to $86,000.

But back to our friend Boulet: His salary is a cool $107,600—to fill a position that has been vacant for more than five years. So what was the urgency of filling a long-vacated slot that obviously is little more than window dressing for an agency unable to fill mission-critical classified positions?

Had Harris chosen instead to allocate the combined $193,000 the two are getting, he could have hired four classified employees at $46,750 each. Not the greatest salary, but certainly not bad if you’re out of work and trying to feed a family. And still higher than the state’s family median income

So, what, exactly are the qualifications of Boulet? Well, for openers, he’s the son-in-law of former Gov. Kathleen Blanco and that’s of no small consequence. In fact, that was probably enough.

In fact, it’s not the first time he has landed a cushy position that took on the appearances of having all the right connections. We take you back to 2001, when Blanco was Lieutenant Governor and Boulet was hired as the $120,000-a-year Director of Oil & Gas Cluster Development for the Louisiana Office of Economic Development, a move that did not sit well with the scribes at the Thibodaux Comet: http://www.dailycomet.com/article/20011108/NEWS/111080313?tc=ar

And then there’s our old friend Chance McNeely, another holdover from the Jindal disaster. McNeely, all of 27, has seen his star rise in meteoric fashion after obtaining a degree in agricultural business and working four years as a legislative assistant for the U.S House of Representatives. From there, he found his way into Jindal’s inner circle as an analyst at $68,000. He remained there less than a year (March 6, 2014, to Jan. 12, 2015) before moving over to DEQ where the special position of Assistant Secretary, Office of Environmental Compliance (in circumvention of Jindal’s hiring freeze in place at the time and despite having no qualifications for the position)—complete with a $37,000 raise to $102,000. https://louisianavoice.com/2015/01/13/if-you-think-chance-mcneelys-appointment-to-head-deq-compliance-was-an-insult-just-get-a-handle-on-his-salary/

He held onto that job recisely a year, exiting the same day as his wife got her pink slip, on Jan. 11 of this year. Unlike Ashlee, who remained unemployed for just over three months, Chance was out of work for exactly eight days before being named Assistant to the Secretary at the Department of Transportation and Development, albeit at a slight drop in salary, to $99,000.

But by combining his and his wife’s salaries, the $177,000 isn’t too shabby for a state with a median income of $42,406 per household, according to 2014 data. And how many 27-year-olds do you know who pull down $99,000 per year? http://www.advisorperspectives.com/dshort/updates/Household-Incomes-by-State.php

So, Secretary Harris, as you struggle with balancing the high pay of your political appointees with cutbacks of the ones who do the real work, please know that we understand fully that we live in Louisiana where, no matter the rhetoric, things never change.

You will head an agency that will protect big oil from those of us with ruined pastureland and briny water. DNR will continue to shield big oil from those who would do whatever necessary to preserve our wetlands. And as those oil companies continue to fight back with whatever legal chicanery they can craft—including the buying of legislators.

And the merry-go-round of appointments to those with the right political connections will continue unabated—no matter what self-righteous rhetoric of freedom and justice for all is spewed by the pompous ass clowns we continue to elect.

Now ask me how I really feel.

 

Read Full Post »

Older Posts »