Let me state just for the record right now, the companies I've criticized for using government subsidies funds to move to Albuquerque are more than welcome to come to Albuquerque. And if they provide good, well-paying jobs, that's great! All the more kudos for them. To say that I hate that these companies are coming to Albuquerque is not only completely and utterly false, but is a moronic way to undermine my opinion.
What I don't like is when private companies decide to resort to getting funding through subsidies from the government. Here's a brief few reasons to why:
- Companies tend to overstate and not completely deliver on promises.
- When you give them government subsidies, they'll eventually want more. For instance, the investors in a Pontiac studio still lobbied state lawmakers to , even though their studio was not really saving the small Michigan town.
- The biggest reason: What if the company fails? What if the company moves out of state? Think about this deeper. What will this mean for the taxpayers who paid for the private company? This will mean that the government's investment was essentially put to waste. Mind you, money that they could be spent on better priorities like better public transportation, improving ADA compliance, and better public education, has been spent on these private companies that essentially did nothing to improve the economy at the end of the day.
Let me state just for the record right now, the companies I've criticized for using government subsidies funds to move to Albuquerque are more than welcome to come to Albuquerque. And if they provide good, well-paying jobs, that's great! All the more kudos for them. To say that I hate that these companies are coming to Albuquerque is not only completely and utterly false, but is a moronic way to undermine my opinion.
What I don't like is when private companies decide to resort to getting funding through subsidies from the government. Here's a brief few reasons to why:
1. Companies tend to overstate and not completely deliver on promises. [Remember when HP promised lots of jobs in Rio Rancho but fell short of their goal?](https://www.abqjournal.com/158664/hp-layoffs-surprise-rr-mayor.html)
2. When you give them government subsidies, they'll eventually want more. For instance, the investors in a Pontiac studio still lobbied state lawmakers to [put more money into their tax credits program](https://www.nytimes.com/2012/12/04/us/when-hollywood-comes-to-town.html), even though their studio was not really saving the small Michigan town.
3. The biggest reason: What if the company fails? What if the company moves out of state? Think about this deeper. What will this mean for the taxpayers who paid for the private company? This will mean that the government's investment was essentially put to waste. Mind you, money that they could be spent on better priorities like better public transportation, improving ADA compliance, and better public education, has been spent on these private companies that essentially did nothing to improve the economy at the end of the day.
(post is archived)