Secretary Mabus, a former Mississippi Governor who is also Obama's Gulf Coast Restoration Chief met with U.S. Senators Landrieu, Vitter and U.S. Rep. Anh Cao who would like to see Mabus have Northrop Grumman change its plan to close Avondale by 2013. According to reports Vitter wanted the two final ships being built for the Navy to be done at Avondale and not Mississippi.
Secretary Mabus responded they don't have a Navy issue here but a Grumman issue and that Grumman wants to close Avondale and actually get out of the shipbuilding business. What those three elected officials should be doing is finding a Louisiana solution to a Louisiana problem.
The state's elected officials should immediately take the problem and run with it instead of trying to get Washington involved. Secretary Mabus put the problem where it belongs, in Louisiana's court. Now we will find out how our elected officials respond and if they will display courage and leadership in taking it upon themselves to do something positive instead of running to the Navy. I feel certain our elected officials knew what was coming long ago concerning Avondale and just sat on their hands.
Saturday, July 31, 2010
Monday, July 26, 2010
Another Give Away Of Louisiana State Revenue
St. Tammany Bureau writer in a Times Picayune article dated 7/14 Louisiana Governor Jindal announced that Globalstar, a Silicon Valley company that provides satellite telephone and data services, is relocating its headquarters to the Covington area in Louisiana. According to Jindal and Globalstar the company is committed to: relocating or creating more than 150 jobs in the area by the end of 2011, an additional 50 by the end of 2013 and then 300 more by the end of 2019. Globalstar noted, most if not all of the initial jobs likely will come about through relocations from Golbalstar's California office. In other words, not new hired employees.
The following is what Louisiana gave up to secure the relocation of Globalstar. Louisiana Economic Development committed to proving Globalstar with $4.4 million in expected relocation costs, as well as $3.7 million to offset the cost of leasing the Covington area building, previously the Bruno Wink Office Complex. In addition, Globalstar officials said they were enticed by the state's recently enhanced Digital Media Incentive tax credits that give a tax credit of 35% for payroll expenditures for digital media labor in the state and provide a 25% tax credit for certain other qualified expenditures.
That $8.1 million plus the 60% tax credits to a profit making private company continues the transfer of wealth from the average citizen to those companies who can afford to pay their own way. That loss of state revenue at the time of record state budget deficits and higher unemployment, layoffs, more state projected budget deficits in the coming years and budget cuts is truly astounding. It has been reported here before how the $7-8 billion in state incentives to businesses contained in the state budget are not evaluated on a regular basis by the governor or the legislature to see if the incentives are working.
The 350 jobs that Jindal and Globalstar says will be created by 2019 is a myth and ignores the fact that in the last two weeks the LSU system, UNO and Southern University announced budget cuts that will lay off workers that exceed 350 people. Jindal says those revenue cuts were necessary because of Louisiana's revenue shortfall. What a hypocrite. One should also note that the Louisiana Department of Labor on its website stated from December 07 when the recession officially started through May 2010, unemployment in Louisiana was up 3.1%. If you listen to Jindal he says all is rosy in Louisiana.
The bottom line in this sad announcement is that corporate welfare given to Globalstar will not reduce the cost of their products or service to the consumer nor will it go toward innovation. It will go to increase their profits which in turn will go to increase the bonuses of their CEO and other executives. History has already taught us that. Once again Louisiana has given away its natural competitive advantages and future state revenue in favor of the corrupt ideology of business and elected officials.
The Louisiana Workforce Commission says June unemployment in Louisiana was 8.3%, up from May's 7.1% and also up from 7.8% in June 09. With $7-8 billion in Tax incentive and other give aways of state revenue, one would think Louisiana would be adding jobs at record numbers. After the ribbon cutting for this new announcement I can see the executives of Globalstar sitting around laughing how they pulled another one off, this time on Louisiana governor Bobby Jindal.
The problem is the people of Louisiana, the average workers are paying the price.
The following is what Louisiana gave up to secure the relocation of Globalstar. Louisiana Economic Development committed to proving Globalstar with $4.4 million in expected relocation costs, as well as $3.7 million to offset the cost of leasing the Covington area building, previously the Bruno Wink Office Complex. In addition, Globalstar officials said they were enticed by the state's recently enhanced Digital Media Incentive tax credits that give a tax credit of 35% for payroll expenditures for digital media labor in the state and provide a 25% tax credit for certain other qualified expenditures.
That $8.1 million plus the 60% tax credits to a profit making private company continues the transfer of wealth from the average citizen to those companies who can afford to pay their own way. That loss of state revenue at the time of record state budget deficits and higher unemployment, layoffs, more state projected budget deficits in the coming years and budget cuts is truly astounding. It has been reported here before how the $7-8 billion in state incentives to businesses contained in the state budget are not evaluated on a regular basis by the governor or the legislature to see if the incentives are working.
The 350 jobs that Jindal and Globalstar says will be created by 2019 is a myth and ignores the fact that in the last two weeks the LSU system, UNO and Southern University announced budget cuts that will lay off workers that exceed 350 people. Jindal says those revenue cuts were necessary because of Louisiana's revenue shortfall. What a hypocrite. One should also note that the Louisiana Department of Labor on its website stated from December 07 when the recession officially started through May 2010, unemployment in Louisiana was up 3.1%. If you listen to Jindal he says all is rosy in Louisiana.
The bottom line in this sad announcement is that corporate welfare given to Globalstar will not reduce the cost of their products or service to the consumer nor will it go toward innovation. It will go to increase their profits which in turn will go to increase the bonuses of their CEO and other executives. History has already taught us that. Once again Louisiana has given away its natural competitive advantages and future state revenue in favor of the corrupt ideology of business and elected officials.
The Louisiana Workforce Commission says June unemployment in Louisiana was 8.3%, up from May's 7.1% and also up from 7.8% in June 09. With $7-8 billion in Tax incentive and other give aways of state revenue, one would think Louisiana would be adding jobs at record numbers. After the ribbon cutting for this new announcement I can see the executives of Globalstar sitting around laughing how they pulled another one off, this time on Louisiana governor Bobby Jindal.
The problem is the people of Louisiana, the average workers are paying the price.
Saturday, July 24, 2010
President Obama's Leadership In The BP Oil Spill
It is over three months since the explosion of BP's blown out Macondo well and resulting oil spill in the waters of the Gulf of Mexico. That explosion killed 12 workers and injured many more. Up to this point in time President Obama has showed his leadership and wisdom by his actions.
The President has visited the Gulf Coast several times since the blow out and is scheduled to return again soon. V.P Biden has also done the same. A $20 billion commitment over four years was secured from BP by the President to compensate those affected by the spill and the President put the blame where it belongs, on BP.
Kenneth Feinberg was appointed by the President to administer the $20 billion fund and will operate independently from BP and the White House in discharging his duties. Mr. Feinberg has experience in doing this type of thing and administered the 9/11 fund. The President also appointed Thad Allen as "incident manager" of the spill. Mr. Allen retired from the Coast Guard not long after the explosion and has displayed his leadership and toughness in the matter and is holding BP accountable to cap the well for good and clean up the spilled oil from the Gulf.
Obama's moratorium on deep water drilling in the Gulf as a result of the explosion and loss of life until answers can be found as to the cause of the explosion. There are those in the news media, elected officials, the oil industry, the business community and others who oppose the moratorium and want it lifted before answers can be found even though 12 workers lost their lives. Past Presidents shut down the U.S. manned space flights program that took the lives of our astronauts after two accidents. One was the space shuttle Challenger that broke up in flight and killed all aboard, and the space capsule on earth that caught fire while being tested and killed all inside the capsule. The shutdown lasted over a total of three years and for good reasons.
The establishment of a commission by the President to investigate the causes of the explosion and come up with recommendations for future safety in deep water drilling showed the President's leadership in recognizing the fact that never again should lives be lost and lively hoods be put at risk.
The President has showed his leadership and wisdom concerning this incident despite all the negative talk about his actions, especially by those who continue to take oil lobby money for their campaign war chest. The President needs to stay the course until the issue is settled in favor of the people and the environment.
The President has visited the Gulf Coast several times since the blow out and is scheduled to return again soon. V.P Biden has also done the same. A $20 billion commitment over four years was secured from BP by the President to compensate those affected by the spill and the President put the blame where it belongs, on BP.
Kenneth Feinberg was appointed by the President to administer the $20 billion fund and will operate independently from BP and the White House in discharging his duties. Mr. Feinberg has experience in doing this type of thing and administered the 9/11 fund. The President also appointed Thad Allen as "incident manager" of the spill. Mr. Allen retired from the Coast Guard not long after the explosion and has displayed his leadership and toughness in the matter and is holding BP accountable to cap the well for good and clean up the spilled oil from the Gulf.
Obama's moratorium on deep water drilling in the Gulf as a result of the explosion and loss of life until answers can be found as to the cause of the explosion. There are those in the news media, elected officials, the oil industry, the business community and others who oppose the moratorium and want it lifted before answers can be found even though 12 workers lost their lives. Past Presidents shut down the U.S. manned space flights program that took the lives of our astronauts after two accidents. One was the space shuttle Challenger that broke up in flight and killed all aboard, and the space capsule on earth that caught fire while being tested and killed all inside the capsule. The shutdown lasted over a total of three years and for good reasons.
The establishment of a commission by the President to investigate the causes of the explosion and come up with recommendations for future safety in deep water drilling showed the President's leadership in recognizing the fact that never again should lives be lost and lively hoods be put at risk.
The President has showed his leadership and wisdom concerning this incident despite all the negative talk about his actions, especially by those who continue to take oil lobby money for their campaign war chest. The President needs to stay the course until the issue is settled in favor of the people and the environment.
Thursday, July 15, 2010
Northrop Grumman and Avondale Shipyard
Speculation turned into reality Tuesday July 13 when Northrop Grumman officials announced the Avondale Shipyard facility will wind down in 2013. Grumman, one of the largest defense contractors in the United States will consolidate all of its Gulf Coast operations to its Pascagoula, Mississippi shipyard. That shipyard at Pascagoula employs approximately 12,000 workers. Both of the shipyards were involved in building the Navy's LPD-17 landing vessels.
Louisiana's elected officials say Avondale employs about 5,000 workers who will be out of a job if the situation comes to pass. They were hoping the last two LPD-17's would be built at Avondale which would have kept the Avondale facility in business a little while longer but Grumman put that to rest with their announcement.
In a Times Picayune story dated 7-14 concerning the Avondale matter Grumman CEO Wes Bush was quoted as saying: The consolidation will reduce future costs, increase efficiency and address shipbuilding overcapacity. This difficult, but necessary decision will ensure long term improvement in Gulf Coast program performance, cost competitiveness and quality.
Bush's statement deserve some comment. It's obvious the Avondale shipyard did not fit into any future plans of Grumman unless their two other shipyards had overflow contract work and Avondale was needed to fill the void. Avondale did not fit in with Grumman's need to consolidate, reduce future cost and increase efficiency. Bush's statement also seem to confirm what was stated in another Times Picayune article dated 7-11 that reported: James McCaul, a shipbuilding expert at International Maritime Associates, Inc., said: Avondale's equipment is probably obsolete. I doubt much has been done to upgrade the facility. Avondale ships have also been plagued with malfunctions and setbacks, including cost overruns, construction delays, poor welding, leaks and computer design flaws. Does that mean Grumman let the Avondale facility loose its competitiveness because it had two other shipyard facilities that were kept up to date, especially the one in Pascagoula, Mississippi.
This situation reminds me of an old story where nothing is learned from past experience. Prior to Grumman taking over Avondale, Avondale was in business for many years and did more work unrelated to Naval shipbuilding than they did under Grumman. Avondale survived all of those years. When Grumman took over Avondale we experienced a rerun of a large corporation eliminating a competitor. It's a rerun in Louisiana of the many take overs of independent oil companies by the major oil companies promising more drilling and production that never happened.
Now some of our elected officials in Louisiana want the federal government to give out more defense contracts so Avondale can stay alive. These are the same elected officials who say they hate federal spending. They completely missed Grumman's point of why they are shedding Avondale. Avondale simply does not fit in their plans any more and with the Navy contract coming to an end it gives them an excuse to cut their losses.
No one wants to see 5,000 workers loose their jobs but it is another rerun of corporate America's misplaced priorities. We do not have to look any farther than the BP explosion. BP and the oil industry still have no answers 3 months later, 12 workers were killed, other injured and many elected officials and oil industry representatives oppose the moratorium. They have completely forgot about those workers killed and or injured. Companies as large as Grumman will survive, take over other companies to eliminate competition and the same process will start all over again. Workers will be laid off but their CEO's and executives will continue to receive their bonuses. And elected officials will continue to collect campaign contributions from corporate lobbyist at the same time.
Louisiana's elected officials say Avondale employs about 5,000 workers who will be out of a job if the situation comes to pass. They were hoping the last two LPD-17's would be built at Avondale which would have kept the Avondale facility in business a little while longer but Grumman put that to rest with their announcement.
In a Times Picayune story dated 7-14 concerning the Avondale matter Grumman CEO Wes Bush was quoted as saying: The consolidation will reduce future costs, increase efficiency and address shipbuilding overcapacity. This difficult, but necessary decision will ensure long term improvement in Gulf Coast program performance, cost competitiveness and quality.
Bush's statement deserve some comment. It's obvious the Avondale shipyard did not fit into any future plans of Grumman unless their two other shipyards had overflow contract work and Avondale was needed to fill the void. Avondale did not fit in with Grumman's need to consolidate, reduce future cost and increase efficiency. Bush's statement also seem to confirm what was stated in another Times Picayune article dated 7-11 that reported: James McCaul, a shipbuilding expert at International Maritime Associates, Inc., said: Avondale's equipment is probably obsolete. I doubt much has been done to upgrade the facility. Avondale ships have also been plagued with malfunctions and setbacks, including cost overruns, construction delays, poor welding, leaks and computer design flaws. Does that mean Grumman let the Avondale facility loose its competitiveness because it had two other shipyard facilities that were kept up to date, especially the one in Pascagoula, Mississippi.
This situation reminds me of an old story where nothing is learned from past experience. Prior to Grumman taking over Avondale, Avondale was in business for many years and did more work unrelated to Naval shipbuilding than they did under Grumman. Avondale survived all of those years. When Grumman took over Avondale we experienced a rerun of a large corporation eliminating a competitor. It's a rerun in Louisiana of the many take overs of independent oil companies by the major oil companies promising more drilling and production that never happened.
Now some of our elected officials in Louisiana want the federal government to give out more defense contracts so Avondale can stay alive. These are the same elected officials who say they hate federal spending. They completely missed Grumman's point of why they are shedding Avondale. Avondale simply does not fit in their plans any more and with the Navy contract coming to an end it gives them an excuse to cut their losses.
No one wants to see 5,000 workers loose their jobs but it is another rerun of corporate America's misplaced priorities. We do not have to look any farther than the BP explosion. BP and the oil industry still have no answers 3 months later, 12 workers were killed, other injured and many elected officials and oil industry representatives oppose the moratorium. They have completely forgot about those workers killed and or injured. Companies as large as Grumman will survive, take over other companies to eliminate competition and the same process will start all over again. Workers will be laid off but their CEO's and executives will continue to receive their bonuses. And elected officials will continue to collect campaign contributions from corporate lobbyist at the same time.
Friday, July 9, 2010
Louisiana Big Mouths: Governor Bobby Jindal and Plaquemines Parish President Billy Nungesser
Those two Louisiana officials are still at it passing the buck to the federal government as having no strategy to fight the BP oil spill. They are mad because the U.S. Corps of Engineers has not approved their rock jetty dam idea near Grand Isle. The scientific and environmental communities have concerns rock jetty's could do more harm than good. There is also the question, "who will remove the rock jetty's after the spill is cleaned up."
The Times Picayune in a story in its July 7th issue says as follows: Col. Alvin Lee, the commander of the corps New Orleans District, noted in the letter denying the permit Saturday that he did not believe there were sufficient plans to deal with the removal of the rocks after the spill eventually subsides.
No responsible party to ensure timely structure removal to minimize environmental harm has been identified; no restoration plan to mitigate environmental damages has been furnished; and insufficient baseline date from which to assess project-related damages has been provided. Without a detailed written plan of action that is agreed to by all parties having interest in this project, I have no confidence that remedial actions will be taken in a manner that assures protection of the environment.
In other words, no plan was submitted with the permit to the Corps to remove the rock jetty when they were no longer needed. Sounds too much like BP and the oil industry who had and still have no plan to cap a blow out and remove the spilled oil from the waters of the Gulf timely. Jindal and Nungesser remind me of so many other Republicans who like to talk tough but have no plans of their own to deal with the spill. Lets compare those two loud mouths to what Mississippi is doing.
In an article in the Times Picayune of 7/7 Mississippi is using $20 million of the $50 million BP gave so far to build and lease skimmers after they discovered BP and the Coast Guard command did not have enough skimmers. Mississippi's oil disaster plan has been to spot oil while it was miles out from the barrier islands and Mississippi sound then skim as much as possible before it makes landfall. The skimmers are being built in Mississippi and will produce a total of 27.
Elected officials have the responsibility to protect state lands. All it takes is leadership, something that is lacking in Louisiana. Too many elected officials in Louisiana are still willing to protect BP and big oil and try to pass the buck and blame on the federal government. Jindal's and Nungesser's words to the federal government, Lead or step aside, should be addressed to themselves.
The Times Picayune in a story in its July 7th issue says as follows: Col. Alvin Lee, the commander of the corps New Orleans District, noted in the letter denying the permit Saturday that he did not believe there were sufficient plans to deal with the removal of the rocks after the spill eventually subsides.
No responsible party to ensure timely structure removal to minimize environmental harm has been identified; no restoration plan to mitigate environmental damages has been furnished; and insufficient baseline date from which to assess project-related damages has been provided. Without a detailed written plan of action that is agreed to by all parties having interest in this project, I have no confidence that remedial actions will be taken in a manner that assures protection of the environment.
In other words, no plan was submitted with the permit to the Corps to remove the rock jetty when they were no longer needed. Sounds too much like BP and the oil industry who had and still have no plan to cap a blow out and remove the spilled oil from the waters of the Gulf timely. Jindal and Nungesser remind me of so many other Republicans who like to talk tough but have no plans of their own to deal with the spill. Lets compare those two loud mouths to what Mississippi is doing.
In an article in the Times Picayune of 7/7 Mississippi is using $20 million of the $50 million BP gave so far to build and lease skimmers after they discovered BP and the Coast Guard command did not have enough skimmers. Mississippi's oil disaster plan has been to spot oil while it was miles out from the barrier islands and Mississippi sound then skim as much as possible before it makes landfall. The skimmers are being built in Mississippi and will produce a total of 27.
Elected officials have the responsibility to protect state lands. All it takes is leadership, something that is lacking in Louisiana. Too many elected officials in Louisiana are still willing to protect BP and big oil and try to pass the buck and blame on the federal government. Jindal's and Nungesser's words to the federal government, Lead or step aside, should be addressed to themselves.
Sunday, July 4, 2010
The National Economy: Continued Improvement But Still A Ways To Go
The U.S. Department of Labor announced that unemployment at the end of June was 9.5%, down from the 9.7% at the end of May. Job creation for June was 83,000 from the private sector which was almost nill in May. Approximately 225,000 part time census workers lost their jobs because the U.S. Census Bureau completed it work.
This job picture is not rosy because it is estimated the economy needs to create 200,000 jobs a month to lower unemployment. However, the job picture and the economy is improving, although not fast enough to put the unemployed back to work timely. The turn around is slow but the job losses have been reversed and the economy is in positive growth.
The Obama administration needs to continue to monitor the situation and do every thing in its power to foster continued job growth, lower unemployment and a sustained economy. The Republicans in congress won't help and can't help for two reasons. (1) They are on record of being the party of NO and wanting to see the Obama administration fail. (2) The Republicans have no record of creating a sustained economy, job creation, low unemployment or balancing the federal budget. The Bush administration can confirm that.
The people should recall according to the U.S. Department of Labor, the highest sustained unemployment in the last 28 years occurred on President Reagan's watch. It stayed at over 10% for 10 straight months from September 1982 until June 1983. It should be noted that Reagan had been in office at that time for over a year and did not inherit an economic meltdown that compares with the one Obama inherited.
Unlike Reagan, Bush 41 and Bush 43 President Obama will act on the deficit and federal debt. It will not be quickly because of the shape the economy is in but it will be addressed. In the mean time, the Republicans in congress will continue to talk about the deficit and debt despite their 20 years of silence under those three Presidents who are responsible for the greater part of the national debt as of this writing. ( See my past commentary dated Dec 6, 2009 titled: The National Debt: Betrayal and Devastation for the actual numbers)
The American people are down when it comes to confidence in government, however, their best chance to improve their economic position and have a better quality of life rest with the Obama administration. The past is proof that Democratic administrations perform best for the nation and it will stay that way for the future. The people who run the Republican party today are proof that they embrace an anti American ideology and are unwilling to do those things that really matter and make a difference for the country and its people. They remain the party of blame, personal attacks and have no positive record to run on.
The past tells me it is in the best interest of the country and for the people to give the Obama administration time to continue to turn things around. They will have a fair opportunity to express themselves in the next Presidential election. Fairness is at play here and Mr. Obama is the only President we have at the present time to count on.
This job picture is not rosy because it is estimated the economy needs to create 200,000 jobs a month to lower unemployment. However, the job picture and the economy is improving, although not fast enough to put the unemployed back to work timely. The turn around is slow but the job losses have been reversed and the economy is in positive growth.
The Obama administration needs to continue to monitor the situation and do every thing in its power to foster continued job growth, lower unemployment and a sustained economy. The Republicans in congress won't help and can't help for two reasons. (1) They are on record of being the party of NO and wanting to see the Obama administration fail. (2) The Republicans have no record of creating a sustained economy, job creation, low unemployment or balancing the federal budget. The Bush administration can confirm that.
The people should recall according to the U.S. Department of Labor, the highest sustained unemployment in the last 28 years occurred on President Reagan's watch. It stayed at over 10% for 10 straight months from September 1982 until June 1983. It should be noted that Reagan had been in office at that time for over a year and did not inherit an economic meltdown that compares with the one Obama inherited.
Unlike Reagan, Bush 41 and Bush 43 President Obama will act on the deficit and federal debt. It will not be quickly because of the shape the economy is in but it will be addressed. In the mean time, the Republicans in congress will continue to talk about the deficit and debt despite their 20 years of silence under those three Presidents who are responsible for the greater part of the national debt as of this writing. ( See my past commentary dated Dec 6, 2009 titled: The National Debt: Betrayal and Devastation for the actual numbers)
The American people are down when it comes to confidence in government, however, their best chance to improve their economic position and have a better quality of life rest with the Obama administration. The past is proof that Democratic administrations perform best for the nation and it will stay that way for the future. The people who run the Republican party today are proof that they embrace an anti American ideology and are unwilling to do those things that really matter and make a difference for the country and its people. They remain the party of blame, personal attacks and have no positive record to run on.
The past tells me it is in the best interest of the country and for the people to give the Obama administration time to continue to turn things around. They will have a fair opportunity to express themselves in the next Presidential election. Fairness is at play here and Mr. Obama is the only President we have at the present time to count on.
Thursday, July 1, 2010
The Free Enterprise and Free Market System: Lost In America
I wrote a commentary dated 7/23/08 titled: Innovation: Lost In America, which pointed out how greed among Corporate America has replaced our ability to be innovative and stay on top of economic progress. That result has devastated free enterprise across our country and has destroyed competition. We have become a nation of giving away our revenue to businesses in the form of tax exemptions and etc., at the expense of the people's needs.
And individual states are at the forefront. Lets just take a look at what is happening. States are granting long range tax exemptions for businesses to be located in their state even though it is not necessary. Owners of professional sports are given millions of dollars in concessions to multi million dollar owners who can pay their own way. All of this loss revenue while the states are running huge deficits.
Every state has a built in advantage to lure business and a free market system allows businesses to compete or fail based on those principals. Smart business people find a means to compete without receiving tax exemptions. The problem is businesses have to constantly innovate to progress but why innovate when states are falling over each other to build them new plants or give 10 years of tax exemptions at the expense of the tax payers.
Louisiana is a prime example. The legislature just passed a $26 billion budget for next fiscal year which contains approximately $7 billion of tax exemptions. The owner of the Saints football team has seen his equity in the team increase from $78 million to over $900 million, yet he is still receiving millions of dollars of tax payers money and Louisiana has to plug deficits in its budget every year. And Louisiana is close to the bottom in ranking in a number of area's compared to other states. To top it all the latest report says Louisiana has approximately 700,000 people without insurance.
State governments and their legislature have to once and for all stop the give away of tax dollars and let competition rule. That would be the true free market system, return innovation and let each state reap the benefits of its natural attractions for business and its built in advantages.
The federal government has given the oil and gas industry billions in tax incentives for over 40 years, yet our country is more dependent on foreign oil now than ever before. During the Bush administration it amounted to over $8 billion and the people got record oil and gasoline prices while oil company executives received record bonuses.
It is past time for state and federal governments to end this unnecessary Corporate Welfare that is paid for by the average tax payer and start using that loss revenue to do what is necessary to advance the quality of life for the people. The BP oil spill in the Gulf is a good example. Here we have a company and industry who has yet to develop a plan or equipment to plug a blow out in offshore drilling timely or a plan and equipment to timely remove the spilled oil from the water of the Gulf before that spilled oil reaches land. It should be noted today is day 72 since the explosion and leak.
The free market and enterprise system is truly lost in America just like innovation. All of the huge profits American companies make go to feed the greed of their executives. It is no wonder the economic and fiscal conditions of the states and federal governments are swimming in debt. It is also no wonder why the economic recession is still with us.
And individual states are at the forefront. Lets just take a look at what is happening. States are granting long range tax exemptions for businesses to be located in their state even though it is not necessary. Owners of professional sports are given millions of dollars in concessions to multi million dollar owners who can pay their own way. All of this loss revenue while the states are running huge deficits.
Every state has a built in advantage to lure business and a free market system allows businesses to compete or fail based on those principals. Smart business people find a means to compete without receiving tax exemptions. The problem is businesses have to constantly innovate to progress but why innovate when states are falling over each other to build them new plants or give 10 years of tax exemptions at the expense of the tax payers.
Louisiana is a prime example. The legislature just passed a $26 billion budget for next fiscal year which contains approximately $7 billion of tax exemptions. The owner of the Saints football team has seen his equity in the team increase from $78 million to over $900 million, yet he is still receiving millions of dollars of tax payers money and Louisiana has to plug deficits in its budget every year. And Louisiana is close to the bottom in ranking in a number of area's compared to other states. To top it all the latest report says Louisiana has approximately 700,000 people without insurance.
State governments and their legislature have to once and for all stop the give away of tax dollars and let competition rule. That would be the true free market system, return innovation and let each state reap the benefits of its natural attractions for business and its built in advantages.
The federal government has given the oil and gas industry billions in tax incentives for over 40 years, yet our country is more dependent on foreign oil now than ever before. During the Bush administration it amounted to over $8 billion and the people got record oil and gasoline prices while oil company executives received record bonuses.
It is past time for state and federal governments to end this unnecessary Corporate Welfare that is paid for by the average tax payer and start using that loss revenue to do what is necessary to advance the quality of life for the people. The BP oil spill in the Gulf is a good example. Here we have a company and industry who has yet to develop a plan or equipment to plug a blow out in offshore drilling timely or a plan and equipment to timely remove the spilled oil from the water of the Gulf before that spilled oil reaches land. It should be noted today is day 72 since the explosion and leak.
The free market and enterprise system is truly lost in America just like innovation. All of the huge profits American companies make go to feed the greed of their executives. It is no wonder the economic and fiscal conditions of the states and federal governments are swimming in debt. It is also no wonder why the economic recession is still with us.
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