Tuesday, July 20, 2010

Another day, another cheap political shot from our demagogic president

President Obama and Representative Pete Hoekstra both attended a ribbon cutting for a battery manufacturing plant in West Michigan last week

Holland, Michigan (CNN) - Is it bad form to attend a ribbon cutting celebration when you voted against paying for the project? Rep. Peter Hoekstra, R-Michigan, sat smiling in the front row today as President Obama marked the groundbreaking of a new stimulus-funded project in Holland, Michigan. (CNN)

Liberal toadie CNN reports the truth... Just not all of it. They omitted The President’s money quote:
But during his remarks, President Obama made an un-presidential remark towards Hoekstra, saying: 
"Some made the political calculation that it's better to obstruct than to lend a hand. Now that doesn't stop them from being at ribbon cuttings, but that's OK." (Hoekstra Press Release) (RCP - President’s Remarks)
Just what we’ve come to expect from the Community Agitator in Chief.  The new business is in Pete Hoekstra’s district, he’s running for governor, and he’s a politician, so of course he attended the groundbreaking.

Being against the stimulus is not being anti-jobs. In this case, it’s just the opposite.

Picking Winners and Losers

Here is part of Hoekstra’s response:
"Welcome to Holland, Michigan," Hoekstra said. "If you take a look around, you will see companies that were built by individuals and families. They have never received a government stimulus package. They built it with their own creativity and hard work.

Remember that for every dollar that we give to one business, there is whole group of other businesses that have provided the money to subsidize and invest in the business that the government has chosen." (Hoekstra Press Release)
Exactly. Michigan is a high tax, high regulation state, which is why their unemployment rate is well above even the dismal national average. It’s not the workers, it's the government and the failed liberal policies.

Playing Favorites, Spreadin' it Around

To get LG to build that plant in West Michigan, the federal government provided $151 million in stimulus money, and the state of Michigan exempted the business from much of it’s onerous tax laws and regulations. The total incentive package is worth over $300 million, which is a little under $1 million per job. That’s playing favorites with tax money extracted from taxpayers, and perversely, businesses that must compete with this government-favored company. (wwmt.com)

Hoekstra has a better plan:

"Wouldn't it be more appropriate if we gave a better tax climate to all of our businesses all across the country, all across West Michigan, so that we can see and realize the creativity of all Americans? Not just the ones that are chosen by government," Hoekstra continued.
The very fact that government must suspend their rules and regulations in order to create jobs is itself an indictment of its policies. If we had a good jobs environment, with the right balance of rules and regulation in place, the government would not need to provide incentives.


Mark Adams said...

"Some made the political calculation that it's better to obstruct than to lend a hand. Now that doesn't stop them from being at ribbon cuttings"
Thats because Hoekstra doesn't always hold on to bitter feelings or losing a battle over a bill and focus on the past, as this President and liberal Dems in Congress have done since Jan 21, 2009 with 'its Bushs fault'.
And it's not obstruction, it's saying no to socialism. :)

Silverfiddle said...

Say no to socialism... Yup.

You gave me an idea for a GOP commercial.

This is your country (Reagan's America)...

This is your country on socialism (now)...

Finntann said...

And where do the profits of the Lak-Hui~Goldstar Corporation go?

It's not just raping the American taxpayer to give the money to American companies...

We now get to subsidize foreign corporations as we beg for jobs.

On the plus side, the Obamistration can't say %#)^ about how much compensation Koo Bon-Moo gets.



Trestin said...

Hoekstra's ideas do make more sense; unless, you are using unemployment benefits to create slaves bound to the governments entitlement plantation.

WomanHonorThyself said...

s'ok he brought Broadway to the WH..what a hard worker this tyrant is!

Leticia said...

Leave it to the moron in office to make a jab at a Republican for speaking the truth.

Of course, Obama wants to give a helping hand, it's not his money that he is giving, it is ours! No skin off of his back.

Socialism at its finest.

Norwegian Shooter said...

Hey Silverfiddle,

"Exactly. Michigan is a high tax, high regulation state, which is why their unemployment rate is well above even the dismal national average. It’s not the workers, it's the government and the failed liberal policies."

You got to be kidding. What state taxes and regulations cause the higher than average unemployment? No, it's not the workers, it's the Big 3 Board of Directors and CEO's and the stagnant median wages of car buyers since 2000.

Silverfiddle said...

Keep smokin' that Hopium, Shooter!

Business growth is dead in that state. Those who still have a job are captive because there are no alternatives.

With a good job environment, those fatcats would have to compete for workers...

You mention Big 3 CEOs, you you're including Obama, right?

The government has no right to take tax dollars from one company and give them to another. It is immoral. Tax the crap out of one group and suspend the rules for others. Is that American?

I'll ask the question again. If tax and regulatory breaks got LG in there, why not give every business the same deal? By their logic, the economy should come roaring back.

The Michigan democrats and Obama are practicing selective Reaganism. They are morally, fiscally and intellectually bankrupt.

Norwegian Shooter said...

Since you can't name one state tax or regulation that is causing higher Michigan unemployment, you now blame the current job environment? WTF? I'm asking you what caused the current job environment. Anything?

No, I'm not including Obama, but the CEO's and Boards than ran their companies into the ground over the past 30 years. As for including the government as a current owner of any car company, please tell me how many Directors at any of the Big 3 have been appointed/suggested from the government. Failing that, just how the government is influencing any corporate decisions of the Big 3.

Today, the government takes money from non-homeowners and transfers it to homeowners. It also takes money from young people and gives to old people. Are those immoral?

"Tax the crap out of one group" What taxes and what group?

It's American in the sense that the American government has done it from its founding. It took money from Whiskey producers and gave it to US bondholders.

Because developing batteries for electric cars is a strategic goal for the country. Subsidies / tax breaks / grants etc. are given to single businesses all time by every level of government in the country. Most have no strategic value at all. They are merely given to attract or keep various businesses at a location. Google TIF districts if you want more info on the local subsidy.

Silverfiddle said...

For Michigan's tax status, go here:


You want Michigan to gouge the fatcats? They're already doing it!

The state has bled out over 70,000 jobs over the past 15 years. They didn't go to China or Mexico, they went to Texas, Tennessee and the Carolinas.

You won't bait me into defending the car company owners. They are crony captitalists and their incompetence has been encouraged by the government.

Our tax dollars go into the treasury and are spent on infrastructure and general welfare. No problem.

What I do have a problem with, and this is Hoekstra's point, is when government taxes a business, then uses that money to bribe another company like LG.

Obama and the governor of the failed liberal experiment known as Michigan suspended their high taxes and burdensome regulations to lure LG in.

That in itself is an admission that their economic policies are a failure.

You're a smart guy, shooter, but you're defending the indefensible.

Finntann said...

Setting aside the argument of whether they should or shouldn't have offered tax incentives and stimulus money to lure a company to Michigan...

What? The O-hole couldn't find an American Company to give our tax dollars to?

C&D Technologies, Blue Bell, PA
Concorde Battery, West Covina, CA
Crowne Battery, Fremont, OH
Douglas Battery, Winston-Salem, NC
East Penn Mfg Co, Lyon Station, PA
Enersys, Reading, PA
Johnson Controls, Milwaukee, WI
Trojan, Santa Fe Springs, CA
US Battery, Evans, GA

That list took me about five minutes to compile.

But... I'm sure the Koreans are grateful.


Silverfiddle said...

The O-hole? You never cease to amaze me, Finn...

Those companies probably didn't contribute enough to Obama and the Democrats. It's pay to play, baby!

Norwegian Shooter said...

I'll offer a counter-example: Nevada. Highest unemployment in the country 14.5%, and one of the smallest tax burdens in the country.

Silverfiddle said...

Nevada is a statistical outlier, probably due to the false economy that was based on the housing boom.

I notice you've completely dodged the point, which is Obama and Michigan going selectively Reaganomics in order to bring a paltry 300 Jobs.

Norwegian Shooter said...

Yes, it is an extreme, but that perfectly illustrates how the nation's false economy was based on the housing boom. Michigan's problems were exacerbated by the heavy reliance on a dying industry, not by it's tax and regulatory climate.

Selective Reaganomics is redundant to me: Reaganomics is trickle-down supply-side theory, which inherently selectively helps the rich. What do you mean?

Silverfiddle said...

Now you are being purposely obtuse.

Michigan has a high tax, high regulation regime and the job climate sucks.

The lowered taxes and regulation to lure a business. A tacit admission that their policies stink.

Norwegian Shooter said...

Counter-example. My state of Minnesota has a high tax, high regulation regime and its job climate sucks, just like the rest of the nation, but it sucks less than average.

As I said, lowering taxes and regulation is an admission that government wants to promote car batteries for electric cars.

Finally, the whole 300 jobs thing misses the big picture. First, the money spend on constructing and starting the facility is a direct stimulus (although, one time), which is multiplied through the economy by being spent again and again and again. So the $300 million dollars adds between $450 and $500 million (best guess) in income. The wages on jobs are multiplied in the same manner. year. This isn't huge, but it focuses on the local economy and recurs every year.

The part most often ignored is that the plant needs materials to produce its products. That means increased revenue for every supplier in the plant. Due to nature of this product, that is a lot of money and it too recurs every year. While there are only 300 jobs in the plant, its existence probably supports thousands in its supply chain.

Silverfiddle said...

We'll have to wait and see what the outcome is. The main point is the government is playing favorites. It is taxing some businesses and not taxing others, a fundamental violation of the classical definition of the rule of law (It applies to everyone equally, not exemptions or special pleadings).

Most odious, it is handing over to preferred businesses the tax monies it has collected from other that receive no such special treatment.

Norwegian Shooter said...

The government plays favorites as a matter of course. Every government contract plays favorites. Don't free market buccaneers love winners and losers?

Tax policy plays favorites with just about everything. 501(c)3 orgs don't pay income tax. Capital gains are taxed less than the marginal rate that would apply if it was regular income. In MN, clothes purchases don't pay sales tax. The people in the lower 48 transfer money to Alaskans. Etc. etc. etc.

Silverfiddle said...

Precisely my point! You get it!

Government should not be playing favorites at all. This case is just a particularly egregious one. Government makes the rules, enforced the rules and then suspends them for the favored ones.

That's called crony capitalism

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