Big Business Demanding Big Government
Ed Morrissey links to this article in the Star Tribune:
Though last year’s request for public dollars went nowhere, the Mall of America has an even bigger proposal for expansion using public subsidies.
This year, the megamall wants $181 million from state taxpayers to build an 8,000-space parking garage. That’s the centerpiece of a package of state and local subsidies worth about $234 million, money the Mall of America says it needs for a $1.9 billion expansion that would double its size.
Last year, state legislators didn’t vote on a measure that would have redirected more than $200 million of its future property tax bill toward construction. This time, the mall wants city and state taxpayers to share the burden.
In meetings with legislators, lobbyists representing the mall have insisted that taxpayers will more than earn back these subsidies through higher sales tax revenues, more jobs and extra tourism generated by an even larger megamall. The proposed expansion is known as Phase II.
It will include four hotels, an National Hockey League-size skating arena and a 6,000-seat performing arts center.
“As the biggest beneficiary of this economic development project, the state of Minnesota has the most to gain or lose if this project does not go forward,” Bloomington Mayor Gene Winstead and Bloomington Port Authority President Robert Erickson wrote in a Feb. 26 letter to lawmakers.
This is utterly ridiculous. The government should intervene as little as possible in the private sector. It’s great that the Mall of America wants to expand but this is how it works in business: if you want to expand, you’ve got to pay for it yourself.
Read more at my own blog.
6 Responses to “Big Business Demanding Big Government”
It’s called corparate welfare. Better to subsidize sports arenas than feed hungry children. Sports owners and mall developers contribute to polls, welfare mothers don’t.
It would be pathetic if the state caved to this extortion.
I am fully with my Boshevik Comrade Rudi on this score: corporate welfare is an abomination.
It is bad enough when auto companies do this, forcing different jurisdictions to compete with subsidies for new plant locations. But the Mall is already there, and they are trying to extort money from government for an addition.
If this is approved, I would suspect dark doings behind the scenes. The Mall of America can’t exactly pack up and move to Florida. If they want to make more money, they can fund the expansion themselves.
Adam Smith would be rolling over in his grave. Corporate welfare bums!!!
Komrad Marlow – Even if the Mall paid for the garage with private funds, the state would put the tab for road infrasture. The Detroit Pistons owner paid for his stadium, but the state picked up the tab for highway changes and ramps. This is the only ‘corparate welfare’ that should be allowed. Making the public pay for a new Texas Rangers Stadium…
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Oopps, thats how we got W
Michael, I think your pretty much on the money (I’m not even sure if that pun is intened, or really a pun at all). Your disagreement with Ed:
I would say in situations where it is infesable to have a true free market, say in public utilities such as water which require large infranstructures, it is perfectly OK if the government wants to own the business outright. It think that regardless of weither it is pirvately or publicly owned, monopolies will generally be very inefficent without massive public oversight, so that your damned if you do and damned if you don’t. Note that doesn’t mean I think it is best if the gov bought up all the reigonal utility companies, but just that I wouldn’t object if they did.
I’m still smarting from the arguments against increasing the minimum wage because it would interfere with the free market system.
What free market system?
Yep, there are few things sillier than the same companies that scream about government intervention when it comes to the minimum wage pushing for government subsidies for themselves.