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    Who are the NERD fund donors Mr Snyder?

    Raise the curtain.

    We All Live In Poletown.


    By JGillman, Section News
    Posted on Thu Apr 29, 2010 at 10:19:36 AM EST
    Tags: Michigan, MEDC, Political favors, Corruption, Public Good, Public Use, Waste, Fraud (all tags)

    Anyone who has read my work here, or at MTTM on a regular basis, might have an understanding I am not a big fan of the MEDC, or for that matter, of any government funded operation that has as a matter of its business model, a mandate to give away tax payer dollars.  I disagree with any particular favoritism by government, and any funding from government towards private business entities that essentially picks winners out of a basket of marketplace entries.

    The reasons I disagree with these methods of "spurring economic growth" are many, but essentially, a direct credit or payment to a business for it to settle in a particular location is "Taking" from others who pay the dues (taxation) and giving to another without any benefit to the payers, and in some instances working directly against their best interests..

    There are "Public use" vs. "Public good" arguments that look at government's practice of taking.  The 5th amendment: "Private property shall not be taken for a public use, without just compensation", addresses a reasonable goal of keeping citizens whole when it becomes necessary to use what they own for the common use of the citizens.  And in a smaller way, the taxes we pay, are presumably for the necessary operation of government services, which we also presumably benefit from "equally."

    The questions to ask when discussing taxes taken for the benefit of a particular industry, a particular entity, or specific persons or groups however,  Are:   "are we not seeing a a kissing cousin to eminent domain abuses?" and  " Should the taking of one entity's assets, to grow another's, because that other entity can benefit the all, be considered the public good?"

    Remember...  Taking for the "Public good" has already been prohibited in Michigan in two important ways..

    First, the Poletown decision of 1981 was overturned by the Michigan Supreme Court in 2004 with the case essentially defining the difference between public use and public good.

    Secondly, Michigan voters in 2006 unanimously decided to amend the state constitution to prohibit the practice of "public good" eminent domain takings.

    You might see where I am going with this by now.

    What do you pay your taxes with?  Quite obviously we cannot offer chickens or any other real property to the treasury to satisfy our obligations, so money. as a substitute is used to convey that part of your property to meet those obligations.  The problem however, is when it is used not to provide services to all in an equal manner as a road, legal system, or schools might be, but is in fact given to another business to give it a "leg up" on the competition, be it abroad, or across the street, or worse... in your own industry.

    The MEDC is an immoral extension of political favor funded with the taxpayer funds generated from business owners, property owners, or anyone else who pays taxes through the gamut of confiscatory measures used in Michigan.  The money is your property.  Taxation, though legitimate, is for specific USE of government.  It couldn't be more clear that the money (property ) you contribute towards government operations should not be "given" to those who know how to fill out grant paperwork, or game the system with a "public good" argument.  And some folks are particularly talented..  (just look at businessman Rick Snyder's involvement on BOTH sides of the cash window as the MEDC's first leader, and more recently a recipient.)

    But it gets worse as we examine the details of such operations more closely.

    Recently, there was a great example of how big money attracts big scams.  When the MEDC awarded Several Million dollars of taxpayers money to a convicted embezzler who had his world headquarters located in a 55x12 trailer in SE Michigan.  It was fraud, and a great deal of embarrassment for the operators of the MEDC money tree.  It seems an unlikely type of operation, but when our legislators started looking at the books more closely in a recent audit, they discovered:

       

    The state's "flagship" economic development program may have doled out an estimated $150 million in tax credits erroneously in the last five years to companies that didn't meet the criteria due to a lack of oversight, according to State Rep. Tom McMillin,

    It seems there is a little more than occasional waste..  $150 Million is a lot of paid beer breaks. And immorality aside, the system appears to be rife with little rule benders.  Indeed, while we must submit to our daily dose of eminent domain through taxes towards public use, the "public good" is hardly served by favor or unexpected mistake granting any one special interest a piece of our productivity through the use of force.

    Michigan's Public Good, can be best served with the elimination of its manipulative bureaucracies, starting with the permanent dissolution of the MEDC.

    < Matt McCormick Announces Candidacy | Eat a hearty breakfast lads.. for tomorrow >


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    Display: Sort:
    Sopranos (none / 0) (#1)
    by archiespeck on Thu Apr 29, 2010 at 12:12:43 PM EST
    There's an episode of the Sopranos that illustrates this point beautifully. Tony is tipped off to a government program that gives grants for rehabbing and selling housing in impoverished neighborhoods. So he finds a legitimate partner, buys up a bunch of ghetto housing on the cheap, and applies for the grants. After he pockets the money, he lets the houses rot. So the taxpayers are out the money and the neighborhood stays in the same shape.

    Obviously a fictional example, but I'm sure it's very much a reality when you think of all the government programs out there and the scammers that are out to get their hands on the money...

    • Fiction! by grannynanny, 04/30/2010 04:54:45 PM EST (none / 0)
    It's my understanding that... (none / 0) (#2)
    by KG One on Thu Apr 29, 2010 at 02:00:44 PM EST
    ...the MEDC/MEGA is still around for two reasons.

    First, it was an idea of Engler's and the GOP "leadership" doesn't want to abolish something that was his brain-child.

    Two, democrats love it due to the fact that it simply involves giving away large sums of other people's money.

    MEDC (none / 0) (#3)
    by LookingforReagan on Thu Apr 29, 2010 at 02:50:52 PM EST
    Under the Czarina it has become the Michigan Economic Disaster Committee. So it is working as the Czarina and the Progressives have hoped. Using the money to pay off contributors, cronies and special interest groups. Funny how many of these Progressives are caught up in Pay to Play. Blago, Bill Richardson, the Czarinas mentor Ed McNamara, the first gentleman. Hmmm. Seems to be a pattern here. I am sure the Czarina is feathering her nest quite well for her coming retirement.

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