On Monday, the Janesville city council will consider a request from W.W. Grainger for a $227,500 forgivable loan in what the
Janesville Gazette terms as a "reward" to the company for a committment to create jobs over the next three years.
Wikipedia Excerpt:
Grainger is a Fortune 500 corporation and has increased dividends to its shareholders for 36 consecutive years. The company has grown consistently since becoming public and has passed $1 billion in annual sales in 1984 and $5 billion in sales in 2004.
So why doesn't government create a "means" test for businesses to prove hardship like they do for most anyone else trying to contract for a taxpayer handout? I know, I'm being utterly ridiculous. Stupid me.
5 comments:
This story reminds of the people wearing gold chains, Gucci shoes and a rolex driving around in an Escalade buying groceries with food stamps.
Lou, I'm sure you've seen the recent letter in the paper from a person who claims the city had no interest in helping him start a small business. Their idea of a means test appears to be the exact opposite of what it should be. These clowns are handing out dollars and tax credits to biggest players and cutting off underfunded innovators who could really use some help.
I totally agree. A while back, a few Janesville "pro-economic development" council members almost cut off a "regular" guy who wanted to borrow a meager $5,000 to start up a printer ink cartridge recycling exchange. Those are the people that could use taxpayer seed money. I'd rather borrow out 22 $10,000 small business loans over the one "reward" for Graingers anytime.
Why? that's all I want to know! Why do the Graingers deserve or need this money? Our money! A forgiveable loan means they don't have to pay it back right? Don't they have a multi-billion dollar business? Can't they qualify for a regular bank loan? Are they strapped for cash and need this money to keep their business afloat? Seriously, what is wrong with our city council? At least make them create the promised jobs BEFORE giving them the cash!
There is no logical or moral reason. Why does a corporation with investment stockholders need capital from government. Isn't that why they have stockholders? To raise that capital? When a city council won't openly debate giving away a quarter million dollars to a multi-billion dollar corporation because it fears of losing business and jobs - obviously something is desperately wrong. And when fear becomes the primary negotiating factor - it becomes extortion. But the cat's been out of bag for a long time in Janesville. The city has a reputation for not supporting the "little man," the future Hendricks' of the world. Instead they cowtow to the wealthy and established Hendricks' and organized business. It will be nearly impossible to reverse the trend without developing a "means test" to weed out businesses who clearly are sitting on large fortunes of their own. Again, unless its extortion.
Post a Comment