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Old 12-05-2012, 02:05 PM
 
Location: New Orleans, LA
1,579 posts, read 2,206,375 times
Reputation: 1153

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If free markets are a conservative principle, then why do conservatives brag about giving select companies subsidies? I realize it's marketed to the general public as economic development but I have a real problem with this.

I've worked very hard at building a small IT consulting firm which specializes in .net applications.

Earlier this year, the state of Louisiana agreed to pay a newly formed company millions of dollars to set up shop here and to compete directly with us.

This company gets free commercial office space in the heart of the downtown business district, gets 25% of EXPENSES reimbursed, and 30% of salary/payroll expenses. Its very demoralizing to know I am forced to pay taxes that are handed over to a competitor.

How can us small businesses possibly compete with that? I was talking to another business owner, who is actually an innovator in our field and they are so disgusted by this that they're going to leave the state.

Even if you believed that it was pure economic development, how do free-market conservatives manage to praise this sort of behavior?
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Old 12-05-2012, 02:23 PM
 
Location: Great State of Texas
86,052 posts, read 80,768,226 times
Reputation: 27699
Quote:
Originally Posted by things and stuff View Post
If free markets are a conservative principle, then why do conservatives brag about giving select companies subsidies? I realize it's marketed to the general public as economic development but I have a real problem with this.

I've worked very hard at building a small IT consulting firm which specializes in .net applications.

Earlier this year, the state of Louisiana agreed to pay a newly formed company millions of dollars to set up shop here and to compete directly with us.

This company gets free commercial office space in the heart of the downtown business district, gets 25% of EXPENSES reimbursed, and 30% of salary/payroll expenses. Its very demoralizing to know I am forced to pay taxes that are handed over to a competitor.

How can us small businesses possibly compete with that? I was talking to another business owner, who is actually an innovator in our field and they are so disgusted by this that they're going to leave the state.

Even if you believed that it was pure economic development, how do free-market conservatives manage to praise this sort of behavior?
Hire a Black Hispanic woman and make her the CEO.
You'll be turning down government contracts because you are so busy.

I was actually approached and offered a CEO (in name only) position when a bunch of guys left my company to start their own.
They wanted to get the steady government contracts and with me as CEO (woman) they could qualify as a minority owned business.
I said Thanks but no thanks.
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Old 12-05-2012, 03:07 PM
 
41,600 posts, read 22,797,710 times
Reputation: 20570
Quote:
Originally Posted by things and stuff View Post
If free markets are a conservative principle, then why do conservatives brag about giving select companies subsidies? I realize it's marketed to the general public as economic development but I have a real problem with this.

I've worked very hard at building a small IT consulting firm which specializes in .net applications.

Earlier this year, the state of Louisiana agreed to pay a newly formed company millions of dollars to set up shop here and to compete directly with us.

This company gets free commercial office space in the heart of the downtown business district, gets 25% of EXPENSES reimbursed, and 30% of salary/payroll expenses. Its very demoralizing to know I am forced to pay taxes that are handed over to a competitor.

How can us small businesses possibly compete with that? I was talking to another business owner, who is actually an innovator in our field and they are so disgusted by this that they're going to leave the state.

Even if you believed that it was pure economic development, how do free-market conservatives manage to praise this sort of behavior?

Who have you heard that favors free market capitalism lift up government subsidies?

Maybe these people are social conservatives and not fiscal conservatives. They are out there...
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Old 12-05-2012, 03:14 PM
 
Location: West Michigan
12,372 posts, read 8,857,573 times
Reputation: 7363
Quote:
Originally Posted by DRob4JC View Post
Who have you heard that favors free market capitalism lift up government subsidies?

Maybe these people are social conservatives and not fiscal conservatives. They are out there...
What do you call it when cities and states give companies tax free status for 10-15 years to relocate and even have been known to give them free land to build factories on just to get them to come locate in their area? What do you call it when cities and states build roads and sewer and water lines to certain places just to get a business to come in without giving that company an assessment to cover the costs of providing them with that service? I'm not saying it's necessarily wrong to do these things BUT conservatives who say free market should control everything aren't acknowledging that the government helps many so-called free market businesses.
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Old 12-05-2012, 03:16 PM
 
Location: New Orleans, LA
1,579 posts, read 2,206,375 times
Reputation: 1153
Quote:
Originally Posted by DRob4JC View Post
Who have you heard that favors free market capitalism lift up government subsidies?
Here, in Louisiana, Bobby Jindal proudly announces his "job creating" government subsidies on a regular basis.

He is considered to be a conservative, fiscal hawk and a major player in the national GOP.
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Old 12-05-2012, 03:20 PM
 
Location: Great State of Texas
86,052 posts, read 80,768,226 times
Reputation: 27699
Quote:
Originally Posted by things and stuff View Post
Here, in Louisiana, Bobby Jindal proudly announces his "job creating" government subsidies on a regular basis.

He is considered to be a conservative, fiscal hawk and a major player in the national GOP.
You have to become a minority owned business to get government favors.
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Old 12-05-2012, 03:24 PM
 
Location: New Orleans, LA
1,579 posts, read 2,206,375 times
Reputation: 1153
Quote:
Originally Posted by HappyTexan View Post
You have to become a minority owned business to get government favors.
I really wish you'd exit this thread.

I'm an Asian woman. I get preferential treatment on SBA loans and when bidding on government contracts. That's it. I don't use either perks. I'm not getting free rent, much less 30% of expenses paid for by the tax payers.
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Old 12-05-2012, 03:28 PM
 
Location: On the Chesapeake
41,018 posts, read 53,276,271 times
Reputation: 54956
Did you try to get in on the action?

The theory behind tax abatements, etc. is that the loss of tax revenue will be offset by increased business and the attendant increase revenues from that (sales tax, income tax from employees, use taxes, etc.). The idea is based on leveraging.

The State of Maryland and my County have recently suspended $300M in property tax revenues to entice the owners to construct a new nuclear reactor to go with the two we already have. Meanwhile our Governor is advocating that current rate payers have their electric bills raised by $2/month to raise funds for grants to power companies to develop wind farms, mostly off shore of Ocean City.
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Old 12-05-2012, 03:33 PM
 
41,600 posts, read 22,797,710 times
Reputation: 20570
Quote:
Originally Posted by things and stuff View Post
Here, in Louisiana, Bobby Jindal proudly announces his "job creating" government subsidies on a regular basis.

He is considered to be a conservative, fiscal hawk and a major player in the national GOP.
Sounds like he is part of the problem - especially if Louisiana is operating in debt.

I agree with you. I may allow a one time subsidy to get a new project up and running - especially is the benefits to society are worth the investment - but definitely not repeat and/or minority targeted subsidies.

The best thing gov't can do for business is get out of the way and have minimal common sense regulation.
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Old 12-05-2012, 03:36 PM
 
Location: Great State of Texas
86,052 posts, read 80,768,226 times
Reputation: 27699
Quote:
Originally Posted by things and stuff View Post
I really wish you'd exit this thread.

I'm an Asian woman. I get preferential treatment on SBA loans and when bidding on government contracts. That's it. I don't use either perks. I'm not getting free rent, much less 30% of expenses paid for by the tax payers.
Then play your card. You think the government is going to contact you and offer you these perks ?
NO..if you want them then you have to be just as aggressive as your competitors and offer the same or better promises than the competitors.

Tell me to exit the thread because you don't want to hear what I'm posting.

It's a dog eat dog world and there's only so much to go around. You want it then you have to be just as aggressive as your competition.

The money is there and if you want it then do what it takes.

I had an ex neighbor who started his own business locally. Sent his wife to the city chamber of commerce and she walked away with a grant for near $50K for advertising. The only catch..name the city in the advertising.
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