Economic Development?

I have always thought that the promise of ‘economic development’ was a “LIE”…..it is the promise of something that is not going to happen to justify some sort of con perpetrated on the community.

I got thinking about this term more when I watched a piece on the local news…..the head honcho of the country economic development was taunting the building of several small strip malls.executive offices…as a bright world in which the county lives in……

First of all let’s define the term ‘economic development’…..

Economic development is a concerted effort on the part of the responsible governing body in a city or county to influence the direction of private sector investment toward opportunities that can lead to sustained economic growth. Sustained economic growth can provide sufficient incomes for the local labor force, profitable business opportunities for employers and tax revenues for maintaining an infrastructure to support this continued growth. There is no alternative to private sector investment as the engine for economic growth, but there are many initiatives that you can support to encourage investments where the community feels they are needed the most.

That definition is all blue skies and unicorns.

My question is to the city council where is this building economic development?

They built a structure that may remain empty….they employed a couple of guys to erect the structures but where is that economic development?

I mean where these couple of small malls were built sits in an area full of unused space……just two blocks away is a large strip center that sits 90% unoccupied….about one mile away is a large strip mall that is only about 70% occupied and 2 miles away is a strip center that has many open spots for businesses to jump on…..and this does not include the smaller strip malls within a 5 mile radius that sit basically unoccupied…so why were these new malls necessary?

So with this said where is all that ‘economic’ upside?

All this is just my area…..the broader look at local development is just as bleak…..

The average minimum wage in my county is $7.25…that is about half what is needed for a living wage.

So again I ask what ‘economic development’?

Land speculators and contractors are the only people making out like bandits…..by using the BS of ‘economic development’….there is few economic benefits for the average worker in this county.

My next question is….how with so many open spaces for businesses to expand how does a contractor/developer get the cash to build something that may go unused?

Of course I am told that these new structures will benefit the community…..and how does a empty office space enhance my community?

Just who will benefit from this non-existent economic development?

What makes anyone on the council think that business will rush to snap up this new space?

Are the objectives of development met by these structures….those objectives are 1) provide for basic needs.  2) Raise the level of living.  3) Expand the range of economic and social choices.

These structure fail.

How does these ‘new’ buildings offer any of those?  Just who profits from this wish and a hope of destroy land and cutting down trees om a wish and a hope?

My thought is that if we truly wanted economic development then maybe paying livable wages would do more than the promise of empty buildings.

The council needs to design a plan and program for filling empty spaces before the destruction of more land….the council works for the people of the city and should not bow to the cash and wishes of developers….especially on the lie of ‘economic development’.

Just a thought.

I Read, I Write, You Know

“lego ergo scribo”

GOP Unemployment Lie

Since the pandemic and people working from home or unemployed have been subsidized by the stimulus packages from the government.

Another of the GOP ‘Big Lies” is that unemployment benefits is keeping people from returning to work because they are making cash without working.

Yeah, what crap! At $300 a week I will be buying my much cherished Ferrari any day now.

So with an election looming, 2022, the GOP has decided that instead of finding solution they will just keep repeating the same damn lie….over and over…..

Republicans promoted the conspiracy theory that Americans weren’t going back to work amid the COVID-19 pandemic because they were too busy living the comfortable life on the U.S. dime. Data now shows that they were wrong.

The New York Times reported Sunday that in Missouri when federal pay for the unemployed was scrapped, workers still were being choosy. Gov. Mike Parson (R) proudly proclaimed that his state would be among the first to kill unemployment benefits. It still hasn’t worked, however.

“Work-force development officials said they had seen virtually no uptick in applicants since the governor’s announcement, which ended a $300 weekly supplement to other benefits,” said the report. “And the online job site Indeed found that in states that have abandoned the federal benefits, clicks on job postings were below the national average.”

It’s early on in the post-pandemic era, but thus far, the GOP claims appear to be false.

https://www.rawstory.com/republican-unemployment-lie/

Axios has taken a good look at the people that are staying home…..https://www.axios.com/high-unemployment-insurance-people-reject-jobs-9e426791-65b6-453b-9803-81aa3d0ca7e7.html

For those with economic tastes here is a deeper dive into the situation from the Morning Consult…..

  • The termination of federal unemployment insurance benefits is likely to produce an estimated 1.84 million jobs through the end of the year, particularly as more UI recipients begin actively looking for work.

  • The U.S. economy will remain roughly 4.7 million jobs short of where it was prior to the pandemic even after workers on unemployment insurance return to working.

  • Most unemployment insurance recipients know that their benefits have started to expire and feel the pressure to find jobs, likely leading them to reduce spending and save a greater share of their benefits as they transition to a more permanent source of income.

Expiring Unemployment Insurance Could Add Up to Nearly 2 Million Jobs This Year

As usual the GOP finds some non-existent problem to demonize for an election….sad part is the American voter is so damn ignorant they will believe the lie and vote accordingly.

The GOP never has a solution of perceived problems….all they ever have is lies, misinformation and finger pointing as well as demonization.

I Read, I Write, You Know

“lego ergo scribo”

An Alternative To The $15 Minimum Wage

Well that big thing is the proposal for a $15 minimum wage….and of course the GOP is having a stroke at the idea.

They preach the same crap every time….that it will cost jobs and drive corporations overseas…..To this I say BS to the first accusation and to the second then let the cowards go as long as they pay a fat tax for leaving.

Contrary to popular support…..Two-thirds of Americans (67%) support raising the minimum wage to $15 an hour, including 41% who say they strongly favor such an increase, according to a Pew Research Center survey…..although a majority of the American public support this idea…..it is a doomed proposal.

The $15 thing will NEVER fly in the Senate…..even though the Dems have a slim majority they also have a couple of conservs in the party that hate seeing humans make a descent living….not to mention any name….Manchin and Sinema…..

Maybe there is a couple of things that could be done that would actually make a difference in people’s lives…..

The government could make it a more just society but they are afraid to slap around the wealthy that take from society and give nothing in return…..afraid the cash cow will dry up for their re-election funds.

Just my idea to help if you cannot manage to raise the minimum wage…..since food seems to suck up the cash on hand along with shelter, utilities…..why not use a tool, that is at hand?

Price controls.

The government could step in and make life easier for those that are struggling especially these days of lockdowns and unemployment….

Government price controls are situations where the government sets prices for particular goods and services.

Types of price controls

  • Minimum prices – Prices can’t be set lower (but can be set above)
  • Maximum price – Limit to how much prices can be raised (e.g. market rent)
  • Buffer stocks – Where government keep prices within a certain band
  • Limiting price increases – In a privatised monopoly (e.g. electricity, gas, water – where there is no competition) the government regulator may play a role in limiting how much prices can be increased. In the UK, regulators use a formula like RPI-X.
  • Direct price setting – In a command economy, prices of goods may be set by the government.

Since food seems to continue in a never ending spiral upward to the point where people have to decide between food or rent the government should step in and help.

It is not like this has not taken place in the past…..

Signed on August 15, 1970, during the administration of Richard Nixon, the Economic Stabilization Act gave the president power to impose wage and price controls to stem inflation caused by federal efforts to finance its operations. It extended a law that had provided the executive with similar authority during the Korean War; the earlier law, in turn, had precedents in controls imposed during World Wars I and II.

For those that would like to know more about this law then I can help…..

https://scholarlycommons.law.case.edu/cgi/viewcontent.cgi?referer=https://www.google.com/&httpsredir=1&article=3158&context=caselrev

Not to worry this will NEVER happen because Congress is well paid by lobbyist to keep anything good from ever taking place.

Politicians play to a base and the rest of us be damned….people go hungry and people become homeless and yet NO ONE gives a shit.

You may not like my idea but for now it would help those that need it the most.

Turn The Page!

I Read, I Write, You Know

“lego ergo scribo”

That Global Minimum Tax

Biden’s Sec Treasury recently proposed a policy that I can get on-board with (there are some few that I can support)…….

Now it appears that more and more countries are signing on to this policy…..
Some 130 countries have backed a global minimum tax as part of a worldwide effort to keep multinational firms from dodging taxes by shifting their profits to countries with low rates. The agreement announced Thursday by the Organization for Economic Cooperation and Development also provides for taxing the largest global companies in countries where they earn profits through online businesses but may have no physical presence. The agreement followed a proposal from President Biden for at least a 15% rate, an initiative that propelled the talks toward meeting a deadline for a deal by the middle of this year. The deal now will be discussed by the Group of 20 countries at meetings later this year, the AP reports, in hopes of finishing the details in October and implementing the agreement in 2023.
 
Under the deal, countries could tax their companies’ foreign earnings if they go untaxed through subsidiaries in other countries. That would remove the incentive to use accounting and legal schemes to shift profits to low-rate countries, since the profits would be taxed at home anyway. Not all of the 139 countries that joined the talks signed on to the deal. The proposal to tax countries where they have sales but no physical presence, which would require countries to sign up for a multilateral convention, excluded extractive companies such as oil and mining and regulated banks. The deal now faces more technical work and review by the Group of 20 countries. In the US, Biden has proposed a 21% minimum rate on overseas earnings of big US companies to deter them from shifting profits to tax havens. Biden’s US tax would need to be approved by Congress.
Like I said….I believe this is a much needed tax policy….
 
We will see just how effective it truly is or is this just a tactic to quell some larger issues.
 
Watch This Blog!
 
I Read, I Write, You Know
 
“lego ergo scribo”
 

Global Minimum Corporate Tax?

Here is an idea that I can support…..but an idea that will be fought tooth and nail by corporations that do not want to pay anything for the right of economic exploitation….

But Biden’s SecTreasury has proposed a plan for a global tax…….

Corporations around the world should pay at least a 15% tax on their earnings, the Treasury Department said Thursday as part of its push for a global minimum for businesses.

The final rate could go even higher than that, according to a Treasury release that said the 15% minimum is a “floor and that discussions should continue to be ambitious and push that rate higher.”

U.S-based companies currently pay a 21% rate, a level that was slashed during the Trump administration. Previously, the top rate had been 35%.

Under a proposal from President Joe Biden, the tax rate would be lifted to 28%, part of a plan to raise levies on both companies and the highest earners.

Treasury Secretary Janet Yellen has been touting the benefits of a global corporate minimum tax rate that she said would discourage companies from relocating domiciles to other countries to cut their tax burdens even though most of their operations are in the U.S.

Yellen’s Treasury believes “that the international tax architecture must be stabilized, that the global playing field must be fair, and that we must create an environment in which countries work together to maintain our tax bases and ensure the global tax system is equitable and equipped to meet the needs of for the 21st century global economy,” the department said in a news release.

https://www.cnbc.com/2021/05/20/us-proposes-global-minimum-corporate-tax-rate-of-15percent-with-an-eye-on-something-even-higher.html

Sadly I do not see this as a plan that will make it….corporations own a lot of politicians around the world and they will do as they are told…..

I may have been pre-mature in my doubt….

The Group of Seven wealthy democracies agreed Saturday to support a global minimum corporate tax of at least 15% in order to deter multinational companies from avoiding taxes by stashing profits in low-rate countries, per the AP. G7 finance ministers meeting in London also endorsed proposals to make the world’s biggest companies—including US-based tech giants—pay taxes in countries where they have lots of sales but no physical headquarters. Britain’s Treasury chief Rishi Sunak, the meeting’s host, said the deal would “reform the global tax system to make it fit for the global digital age and crucially to make sure that it’s fair, so that the right companies pay the right tax in the right places.”

US Treasury Secretary Janet Yellen, who attended the London meetings, said the agreement “provides tremendous momentum” toward reaching a global deal that “would end the race-to-the-bottom in corporate taxation, and ensure fairness for the middle class and working people in the US and around the world.” France cheered Saturday’s agreement and claimed credit for acting as its catalyst. “We made it! After 4 years of battle, a historic accord was reached with G7 member states,” French Finance Minister Bruno Le Maire tweeted. “France can be proud!” The endorsement from the G7 could help build momentum for a deal in wider talks among more than 140 countries being held in Paris as well as a Group of 20 finance ministers meeting in Venice in July.

Will this be just another great idea that will be thrown on the trash pile of good ideas.

A side thought for my reader to ponder…

As long as I am writing about globally….how would you like to work for McDonalds…..in Denmark…..

The agreement with McDonalds does not only include salary per. hour and 6 weeks holiday. There is extra charge for evening and night work. Payment for seniority, holiday payment (Easter and Christmas for example, (100%), on top of all payment there is an extra 6.85%, Pension plan for employees from the age of 20 (12%).

In the Danish labor market, all employees have 5 weeks paid holiday by law. Some of the things that are extra in the companies that have a collective agreement, just like McDonalds, is one week more (called Feriefridage). So, the answer to your question is yes. McDonalds employees have 6 weeks’ paid vacation for all.

McDonald’s workers in Denmark truly make more than $20 an hour.

Do McDonald’s Workers in Denmark Make $22 an Hour?

Interesting!

I Read, I Write, You Know

“lego ergo scribo”

Closing Thought–27May21

Do you have student debt?

This is a hindrance to people as they try to pay off thousands of dollars in debt for their excellent education…..this crippling debt keeps college grads from living the ‘good life’…..

There has been ideas to help people get on with their lives by lessening or cancelling student debt.

Some progressives are calling for the canceling of all student debt….the new president is calling for the cancellation of $10,000 of debt…..that figure is not nearly enough.

Forty-five million Americans now owe a total of $1.7 trillion in federal and private student loans.

For many people, that debt is the biggest drag on their adult lives. It prevents them from buying a home or starting a family or investing in their future. They are stuck in a perpetual loop.

This crisis has led to calls to cancel all that debt and liberate an entire generation of Americans — something I instinctively support. But when you start to think about all the obstacles and trade-offs, you quickly realize how politically fraught such a proposal would be. Is there any way to do it fairly? What about the millions of people who spent decades paying down their loans? And what about the people who didn’t go to college because they didn’t want the debt — how would this land for them?

So I reached out to Astra Taylor, documentary filmmaker and author of the 2019 book Democracy May Not Exist, But We’ll Miss It When It’s Gone. Taylor has become a leading advocate for debt forgiveness, and she treats it as not just an economic problem but as a small-d democratic problem. We talk about why that is and how it shapes her argument.

https://www.vox.com/policy-and-politics/22383450/student-debt-forgiveness-biden-astra-taylor

A total cancellation of student debt could be fuel for the economy….it would put $1.7 trillion dollars into the economy…..and that would be a huge boost across the board.

Turn The Page!

I Read, I Write, You Know

“lego ergo scribo”

GOP Economics

Since 1980 I have not thought the GOP had the best economic ideas to put this country on the path for progress….and since then all their economic solutions have actually done little to improve the lives of Americans unless they are in the wealthy class.

These days nothing has changed……here are some of the statements made that illustrate the GOP lackluster economic ideas and why.

First infrastructure……most specially our road systems….

… it’s up to Senate Republicans to try to demonstrate there’s some rationale for their GOP colleagues to be participating in this thing called government. It’s been ages since they’ve been called upon to proactively contribute to a policy-making process, in this case infrastructure, and thus far they’re not making much headway.

They’re “getting there,” says Sen. Shelley Moore Capito of West Virginia, of the process they’ve been working at for nearly a month. Back in mid-April they revealed just how incompetent they’ve become at governing, offering up a $568 billion counter to President Joe Biden’s $2 trillion proposal. It was a back-of-the-napkin scribble that offered a vague funding mechanism of taxes on electric car drivers and taking COVID-19 relief money away from states. It’s a reflection of just how inadequate that proposal was that senior Republicans are now inching up their spending limit. Minority Leader Mitch McConnell went up to $800 billion just last week, and on Monday Sen. Lindsey Graham offered $900 billion, but they’re still fighting the idea of raising taxes on the wealthy and corporations to fund it.

https://m.dailykos.com/stories/2021/5/18/2031013/-While-rural-America-clamors-for-infrastructure-Republicans-obsess-over-keeping-corporate-taxes-low

Then there is the attempt to starve people into accepting crappy wages…..

Millions of jobless workers in Republican-led states across the U.S. are growing increasingly worried that they soon won’t be able to afford rent, medicine, and other basic necessities as GOP governors rush to cut off pandemic-related unemployment benefits, a widely condemned attack on struggling people that the Biden administration insists it is powerless to stop.

As of this writing, 22 Republican governors have moved to withdraw from a federal program that boosted regular unemployment checks by $300 per week to help jobless people weather the ongoing economic crisis.

Of those Republican-led states, 19 are also ending their participation in Pandemic Emergency Unemployment Compensation (PEUC) and Pandemic Unemployment Assistance (PUA)—federal initiatives that provide an extension for people who have exhausted their state-level benefits and offer aid to gig workers and others who are typically ineligible.

To justify stripping a crucial lifeline from the jobless, the Republican leaders of Texas, Georgia, Alabama, Arkansas, South Dakota, and other states have falsely claimed that the federal unemployment programs are so generous they are dissuading people from rejoining the workforce—a narrative that ignores a slew of other relevant factors, from the low wages on offer to lack of child care to health concerns.

https://www.commondreams.org/news/2021/05/21/attempting-starve-people-back-work-anger-grows-gop-governors-cut-jobless-benefits

Their big idea is that if people get help then the economy will collapse…..according to Sen Ron Johnson of Wisconsin….

Senator Ron Johnson, are asking the poor to stay poor for the good of all America.

On Sunday, Johnson appeared on WKOW in Wisconsin to explain his support for a bill that would end the $300 enhanced unemployment benefits. While many conservatives have argued that these benefits are hurting employers who want to pay their employees less than the $16.75 an hour the unemployment benefits come out to, Johnson is taking the bold step of claiming that employers paying workers more in order to compete with said unemployment benefits, and workers demanding more money to work, is bad, because that will lead to inflation.

https://www.wonkette.com/ron-johnson-wants-people-to-work-for-less-money-than-they-need-to-live

Really?

Johnson has just stated what I wrote about over a decade ago…….https://lobotero.com/why-poverty/

I have written many times that GOP economics suck….and now with the stupid within the party their true colors are finally emerging.

Watch This Bog!

I Read, I Write, You Know

“lego ergo scribo”

Closing Thought–18May21

Mississippi’s governor did what all cowards within the GOP does……he jumped on the BS that people are not working because they make too much on unemployment….

Mississippi Gov. Tate Reeves followed the lead of his Republican counterparts in Montana and South Carolina by announcing the state will refuse expanded federal unemployment benefits, costing unemployed Mississippians $300 a week in an effort to force them into low-wage jobs—despite a lot of data showing that Republican claims about the effects of the federal unemployment aid boost are simply false.

President Joe Biden pushed back on some of those claims in Monday remarks on the economy, saying “we don’t see much evidence” that people are staying home because of high unemployment benefits, and pointing out: “We still have 8 million fewer jobs than we did when the pandemic started.” At the same time, Biden emphasized that “anyone collecting unemployment who is offered a suitable job must take the job or lose their unemployment benefits.”

In Mississippi, businesses “report that they cannot get employees to return to work because they can earn more from combined federal and state unemployment benefits than their normal wages … These businesses are no longer suffering from a lack of demand due to COVID-19,” Mississippi state House Speaker Philip Gunn wrote in a letter to Reeves. “Rather, they are suffering from a labor shortage caused by unemployment benefits that exceed normal wage levels for productive work.”

Mississippi’s maximum unemployment benefit without the added $300 a week is $235, so the benefits that “exceed normal wage levels for productive work” end up at $13.38 an hour, just under the $13.43 an hour that the MIT Living Wage Calculator says is a living wage for one adult with no children in Mississippi.

Contrary to Republican claims that people are staying home because they don’t want to work, Ashton Pittman reports that Mississippi’s labor force participation rate is back to pre-pandemic levels. People are either working or looking for work, in other words. And nationally, the April jobs data suggests “the exact opposite” of the claim that people aren’t looking for work because they can get more money from unemployment benefits, as Treasury Secretary Janet Yellen recently noted. That’s because the highest job growth has been in low-wage industries like hospitality and food service, where unemployment benefits can outstrip wages. 

https://m.dailykos.com/stories/2021/5/11/2029937/-Mississippi-dives-into-the-Republican-push-to-blame-low-wage-workers-for-the-COVID-19-economy

This spin that people do not want to work because they are making too much with it is just plain BS.

It seems they want to blame people for the shitty work environment….the GOP is killing workers with their fixation on BS.

Enough Said!

I Read, I Write, You Know

“lego ergo scribo”

 

All Those ‘Freeloaders’!

Closing Thought–13May21

We hear daily from the Trump Party about all those freeloaders that are getting off easy by getting their relief money and benefits…..that they are worthless because they use their money for luxury things like food, shelter and other necessities to live…..they are denigrated daily.

But not a word is said about those GOPers that pissed the money away….

California prosecutors are investigating abuse of the Paycheck Protection Program (PPP), the loans given to businesses suffering under the economic crisis ushered in from the coronavirus pandemic.

According to the New York Times, one person used the government handouts to purchase a Lamborghini, Bentley and Ferrari.

“The man, Mustafa Qadiri, 38, of Irvine, was indicted by a federal grand jury on four counts of bank fraud, four counts of wire fraud, one count of aggravated identity theft and six counts of money laundering, the U.S. attorney in the Central District of California announced,” said the Times.

An OpenSecrets search of Mr. Qadiri revealed he was an active Republican donor, who owns a venture capital firm, All American Capital Holdings, LLC.

https://www.rawstory.com/gop-donor-ppp-lamborghini-ferrari/

Once again this shows that the working stiffs in this country are the drag on society and the wealthy get all the benefits.

At what point do the American people wake the Hell up?

Time for that change that we all keep dreaming of with no help coming…..time for that to end.

Turn The Page!

I Read, I Write, You Know

“lego ergo scribo”

Closing Thought–03May21

When elected Biden was said by conservs that the markets would suffer…..but all their doom and gloom from the GOP and its spokesmen…….happily they were WRONG.

Modest gains for stocks nudged the S&P 500 and the Nasdaq to more record highs on Wall Street as investors braced for a deluge of earnings reports from big US companies. Of the 500 members of the S&P 500 index, 181 will report their results this week. Apple, Microsoft, McDonald’s, and Caterpillar are among the big-name companies that will be telling investors how they did in the first three months of the year. Ten of the 30 members of the Dow will also release their results.. The S&P 500 rose 7.45 points, or 0.2%, to 4,187.62. The Dow Jones Industrial Average fell 61.92 points, or 0.2%, to 33,981.57. The Nasdaq rose 121.97 points, or 0.9%, to 14,138.78. The Russell 2000 index of smaller companies rose 26.15 points, or 1.2% to 2,298.01

The stakes for investors are high this week, the AP reports. With millions of vaccines going out daily and trillions of dollars worth of government-led economic support being paid out, investors have turned much of their attention to how well the global economy—and corporate profits—will do in the recovery. Corporate profits in the S&P 500 are expected to be up 24% from this time a year ago, according to FactSet. Earnings growth is being welcomed by investors who have had to justify high stock values as many companies continue to emerge from a pandemic slump. About a quarter of S&P 500 companies have reported quarterly results so far this earnings season. Of these, 84% have delivered earnings that topped Wall Street’s estimates, according to FactSet.

Not to worry the CEOs are raking in the cash for themselves.

Once again the GOP has shown just how bad they lie and just how outta touch they truly have become.

I Read, I Write, You Know

“lego ergo scribo”