Blackmail Or Bribery? You Decide.
JPMorgan Chase claims it wants to create 500 new jobs in Delaware.
Just one problem. They’ll only create those jobs if the State of Delaware forks over $1.5 million.
That’s right. Poor impoverished megabank wants to do the right thing, but simply can’t afford to do it on their own. So, they want Delaware taxpayers to pony up.
BTW, as usual, looks like Gov. Markell is cheerleading for them. Here’s the AP article that’s on the WDEL site.
Words fail me.
Tags: El Somnambulo, Gov. Markell, JPMorgan Chase, Steve Tanzer Delaware
“Economic Development” has become just another avenue for transferring wealth upward. Blackmail or Bribery? I have a third option… inevitable.
Sadly young Jack never met a Corporate Welfare program he didn’t love, expect the rest of the greedy and rather stupid general assembly to hop on board as well. Problem is Corporate Welfare has a dismal record and has soaked Delawareans in the past, Fisker comes to mind. Calling my Rep and Senator and screaming NO! Why yes, I expect to be ignored.
By my math, if the bank would pay the new hires an average of $3000 less, it wouldn’t need the state money.
Or it could hire 470 people, rather than 500 (assuming an average salary of $50k), and it wouldn’t need the state money.
That said, far better in my mind to pay a subsidy to create decent banking jobs than to bail out casinos that will only be back in two years with both hands out asking for more.
far better in my mind to pay a subsidy to create decent banking jobs than to bail out casinos that will only be back in two years with both hands out asking for more.
Far better in my mind to invest that $1.5 million in education, environmental, and infrastructure improvements that will help create a better climate for businesses that actually have a commitment to Delaware, and which will help build a quality of life that attracts new business.
But, as jason says, it is currently inevitable that Jack will send JP Morgan Chase a check that will barely cover the cocktail weenie budget of their next “thank a chump” lunch
“…far better in my mind to pay a subsidy to create decent banking jobs than to bail out casinos that will only be back in two years with both hands out asking for more.”
Shouldn’t be an either/or proposition. Unless someone can explain why JPMorgan needs a ‘subsidy’ for anything. Like the casino owners, they’re just greedy bastards who have gotten used to hitting the state up for money, and taking it out of our pockets.
Time to say no to both freeloaders.
Better still, I’m guessing the bank will set aside a chunk of that money for campaign contributions to all the good little boys and girls who gave it to them.
I’m not even sure that the General Assembly has anything to do with this. Looks like a big pot of state and federal $$’s to be used as determined by this Council of Development Finance with the acquiescence of DEDO. The most recent set of minutes should give you some idea as to how this works:
http://dedo.delaware.gov/dedo_pdf/NewsEvents_pdf/minutes/2014/February19_2014_CDF_MeetingMinutes.pdf
BTW, look at today’s agenda to give you an idea as to who else is looking to feed at the government trough:
“Description/Agenda:
The Pilot School Incorporated
Delaware Manufacturing Extension Partnership (DEMEP)
Flow Smart, Inc.
JP Morgan Chase Bank, NA
Real Entertainment Wilmington
Nanticoke Memorial Hospital, Inc.
Executive Session”.
Memo to the Joint Sunset Committee:
Put the Council of Development Finance under review. Seek to get empirical evidence to demonstrate that the costs of this program are outweighed by the benefits. Item by item.
This should also be one of the first items on the agenda of a new State Auditor.
Geezer nails it. Raising one million in $1,500 increments is a goddam grind. We are talking 2 to 3 thousand phone calls to everyone from your 7th grade teacher to the guy in your fraternity that you could barely tolerate. Better to lock in a few big PAC paid days.
I really am coming to the conclusion that our system is fucked beyond repair. I’ll be surprised if I even vote in the next election.
If you want to see how the Council on Development Finance basically throws money at companies large and small, click on pretty much any month’s minutes from last year, and fwow up:
http://dedo.delaware.gov/NewsEvents/NewEvents_archive/NewsEvents_archive_press/NewsEvents_notice13.shtml?Notices
BTW, former Senate Queen Bee Nancy Cook is a member of this semi-secret society. What a surprise.
Extortion and abuse syndrome come to mind. In 24 states where JPMorgan is the administrator of the food stamp programs, (card issuance and accounting) it received over $546,000,000 in remuneration. Yeah let’s give them a million and a half for ashtray emptying expenses in one of their headquarters buildings.
Well there is another way of looking at this folks. The $1.5 million is a grant most likely for either/both purchase of property to construct a building that would house those 500 jobs. That building would provide property taxes…right? Those jobs would bring taxes from income…right. Might be a while until the ROI comes around but it would in a few years time. Add that the additional jobs would buy homes that pay property taxes and purchase goods that produce tax from that hidden mercantile tax DE has and long run big picture it’s a win win kind of thing.
If DE doesn’t do it MD. PA or NJ will.
“If DE doesn’t do it MD. PA or NJ will.”
In addition to giving out corporate welfare, that’s a good argument in favor of building up our national identity as a toxic sludge depository. If we don’t we are just giving the toxic sludge business to Oklahoma or South Dakota.
if those states want those industries let them have them…not many jobs come along with those industries Jason…at least DE is taking an opportunity for JOBS that bring taxes and build homes, buy cars and more. El Som was sent a link you might want to read.
Jamie Dimon’s base compensation is $20 million. Boy… just think of all the JOBS he could create if he wanted to splash some of that dough around.
I usually see corporate pork as an anathema, but…
If this is a one time payment, and the bank is willing to assure those jobs for at least 4 years, then the amount is less than those workers will pay in taxes on money earned.
The costs come to only $3k per job. Not very much, really.
Liberal Elite sees the light and understands. I suggest the Jason buys up enough stock to get his voice heard about Jamie Dimon’s base compensation. I’ve got a real issue with that as well but just have to live with the fact that Jamie Dimon’s base compensation is beyond comprehension or understanding. Would suggest not doing business with JPMorgan Chase in protest.
Find out just what corporate welfare any people will quietly submit to and you have the exact measure of the corporate welfare that will be imposed on them.
Why do we need to grant JPMorgan anything to do anything? Let ’em pay for it themselves. Only, they won’t. They’re used to extorting money from taxpayers instead.
If they want to build a building, why can’t they borrow the money from themselves instead if TAKING it from us? Betcha they don’t even charge themselves interest. Why take it out of OUR hides?
Oh, and I really urge you to click on pretty much any of the meetings listed in the links. I almost guarantee that you’ll find some other giving away of government $$’s that will piss you off. It’s a lot more than just JPMorgan.
I did read the links…didn’t read all the notice/minutes but if you think it’s done differently elsewhere please reconsider because given the opportunity I’m sure that other states would jump all over this opportunity although they don’t offer the corporate tax structure DE does…well SD kinda sorta does like courting the banking industry in many ways.
I hope El Som got the email w/link. $20 M grant gets 1.6 BILLION investment in kind. It’s how it works. Can’t say I like it either but that’s the rules of the Economic Development game and if you want to play you’ve got to pay.
The big concern is what Liberal Elite wrote about the jobs being guaranteed for 4 or more years and the cost to JP if they don’t.
Sorry about the use of other moniker EL Som…changed to another device that didn’t know better and I humbly repent.
It’s not done differently elsewhere. It’s a mutual race to the bottom as these companies have mastered the art of extortion.
An extensive NYTimes analysis (every state) demonstrates that it’s essentially a zero-sum game that doesn’t benefit any of the states. Here’s the interactive link:
http://www.nytimes.com/interactive/2012/12/01/us/government-incentives.html?_r=0
Delaware helped to create this game when it legalized usury in order to attract credit card banks here. Might’ve been great for parts of the state’s economy, but it ushered in 18.6% interest rates for the rest of us.
The only beneficiaries of these giveaways are ultimately the corporations. And we’re consistently the dupes.
It’s gonna continue, of course, but it sucks big time.
And we’ve become so accustomed to being the dupes, that we have come to love it.
I can’t argue either of the last two comments and agree in total. It’s NUTZ that it has become a way of attracting business by providing incentives as this post first started but once one state (which one I don’t know or care) did it the new path was started. How it started and why are of no interest either because there is no turning back.
I will read the entire NYT link by bedtime tonight as I’m sure it’s of interest! Thanks!
As for the high interest rates there are cures for that issue. Rates don’t start out that high unless there is a ‘problem’. It is possible to use a card and pay no interest!
Delaware is in sad shape. Raising school taxes was the last straw for us. Across state lines into PA, hello 3.1% income tax. Wake up Delaware your politicians are killing your state.
How it started and why are of no interest either because there is no turning back.
Simply put, that’s a croc.
@Steve Newton: If you spend any time reading the NYT link El Som provided one realizes that croc or not the recruitment of industry is cutthroat a best and what the next step in luring industry will be is anyone’s guess. TIFF breaks started about 15 years ago (maybe even further back) between counties when states started luring smaller industries with incentives. We can only turn the clocks back an hour but always give it later. If you think Red Texas is going to stop the practice think again!
El Som the NYT link as an interesting study. Thanks! I wonder what the next step and what state (or locality) will find yet another new incentive to lure industry. It’s a dark hole and will only get deeper and wider. Bottom line though is 500 jobs is a good deal for the $1.5M if the jobs hold up 4/5 years or more.
Just my humble opinion.
There is an axiom as follows…The answer to every question is NO until the question is asked. Industry asks and seldom gets a no as they usually get an ‘AND we will add…’
They got their money:
http://wdel.com/story.php?id=57925
JP Fuckin’ Morgan Chase.
Total ripoff.