Gov. McDonnell’s football welfare
The Washington Redskins’ owners will receive $6.4 million from taxpayers. They must be doing a touchdown dance.
Many Virginia taxpayers share Gov. Bob McDonnell’s fondness for the Washington Redskins, but that’s not a good reason for giving the team $4 million in public funds.
That amount represents just the state’s share of an incentive package designed to keep the Redskins’ headquarters and practice facilities in the commonwealth and to encourage upgrades valued at about $30 million. Loudoun County is kicking in $2 million and the city of Richmond will contribute $400,000.
June 13, 2012 - 6:15 AM
The crony capitalism around pro sports usually involves stadiums. Whenever government gives money or tax breaks to one business and not others it is wrong. Capitalism doesn’t need government picking winners and losers. I guess I will be supplementing RGIII’s salary this year. I’m sure he needs the money.
Investing $4 million and returning $200 million is a massive return on investment. I don’t know much of the dynamics of this, but that’s quite the return.
IF the state was actually in danger of losing “an estimated $200 million worth of economic activity in the state” and IF the state has an extra $4 million to “play with”, sure, pick the winners and losers, but you damn well better be prepared for when you pick a loser and the consequences of that. Is there any documentation of the actual benefit to the state after all else is considered? I doubt that very seriously, because that kind of real analysis often puts the point to the problem. Government should not help people but it should help corporations? Please! What kind of socialists are you? For that matter, what kind of capitalists are you?
It would be fun to point out NOW the Republicans are OK with the government “picking” winners/losers but I have a larger point.
This is what governments are for and its right and proper. The government is supposed to help our society.
Granted, sometimes these “investments” fail. They should NEVER be done to make your friend’s pocket heavier.
But when a government builds a road, the contracting companies become “winners”.
Now, the question to my mind is what does the community get out of it? Will there be games when anyone regardless of ability to pay can come watch the game? If the stadium is being given this money AND the old rules apply about access, THEN I think it’s wrong.
Wonderful. State employees can’t have raises but a football team gets 6.4 million. When will Va get a governor that cares about the people of Va and show it? It would be great if the governor would fix the pay
inequality of state employees.There are people who my husband works with that don’t have half of the responsiblilies he does yet they make a good bit more than he does even though he’s been a state employee for 20 plus years.
A follow up article to this via The Atlantic for those who are interested.
http://www.theatlantic.com/business/archive/2012/06/how-the-washington-redskins-explain-the-myth-of-us-industrial-policy/258485/?google_editors_picks=true
…Here’s the thing, though: we already have an industrial policy — it’s just involves 50 uncoordinated states fending for themselves. Governors, even Republicans like Virginia’s Bob McDonnell, love using economic incentives to attract businesses they think might add jobs or burnish the image of their state. And so they compete ruthlessly with tax breaks, special bond financings and whatever other tools they can dream up to lure corporations. ….