I use that headline because an old friend of mine, a former union man, told me some years ago that he voted D for that reason. He has since awakened, but that fiction lives on in the minds of some people. I say it’s a lie.
Case in point: The news out of blue, blue IL.
As proof of the misguided, counterproductive policies of Illinois, Governor Quinn hiked corporate incomes taxes to bail out a state deep in fiscal trouble, (it did not and will not work), now grants corporations hefty incentives to not move to Texas.
The Chicago Tribune reports $100 million keeps Motorola Mobility in Illinois
Gov. Pat Quinn put up more than $100 million in financial incentives to persuade smartphone company Motorola Mobility to keep its corporate headquarters in Libertyville â€” the largest package he has offered a company to date and a signal of how badly the state wants to hold on to high-tech jobs.
To persuade the maker of mobile devices and cable TV set-top boxes to stay, rather than move to California or Texas, state lawmakers sweetened terms of its tax-credit incentive program as it has for automakers, including Mitsubishi, and truck- and engine-manufacturers, including Navistar International Corp.
Navistar landed a $64.7 million package last year to keep its headquarters in Illinois, the second-largest deal during Quinn’s tenure.
The deal, announced Friday, breaks down to about $34,750 for each of the 3,000 jobs Motorola Mobility has agreed to retain, considerably more than the $15,000 to $20,000 per job that is more typical when the state awards tax credits to keep or attract businesses.
“We don’t want folks to leave,” Quinn said. “We want them to stay and grow with great companies like Motorola.”
Inane Actions Hurt Small Businesses Most
Note the silliness of Governor Quinn’s explanation. “We don’t want businesses to leave”.
If Quinn did not want corporations to leave, then why did he hike the corporate tax rate to an effective 9.5% thereby giving businesses a huge incentive to leave?
Who gets the tax? All businesses too small to purchase a waiver from their governmental overlords. If Mom and Pop’s donut shop only has 15 workers, you think the state of IL is going to give them a tax break? Let alone a tax break of $35,000 per employee?
The big boys? The companies who are large enough to put a head lock on Gov. Quinn and take his lunch money? No taxes for thee. The little guy? Taxed to oblivion. The party of the little man? I think not.
Next example: Black youth unemployment. Minority workforce employment levels are right at 50% now. Their employment numbers have been decreasing since the Democrats took control of Congress and increased the minimum wage. Walter Williams discusses it.
Call it the law of unintended consequences, but often times government policies that are intended to help people wind up hurting them in the long run.
Thatâ€™s the case made by George Mason University conservative economist Walter E. Williams in his new book â€œRace and Economics: How Much Can Be Blamed on Discrimination?â€ On the Fox Business Network Wednesday Williams explained how minimum-wage laws prevent the employment of black teenagers.
â€œMany times we have a lot of economic policies that are based on intentions and I ask people to look at effects,â€ Williams said. â€œAnd the minimum-wage law is one of those policies that has a very, very harmful effects and you see the effects if you put yourself in the place of an employer and ask, â€˜If I must pay $7.25 an hour to no matter whom I hire, which is minimum wage, does it pay me to hire a person who is so unfortunate that has skills that would only enable him to get $4 or 5 of worth of value an hour?â€™ And for most employers, they would see that as a losing economic proposition. So, the minimum-wage law has the effect of discriminating against the employment of low-skilled people and it happens that many, many of low-skilled people are black teenagers.â€
He continues to point out that unions are the most vocal supporters of increasing the minimum wage, in spite of the fact that their members make wages far in excess of that amount. Why?
â€œWhy should they be concerned about a $5 or $7 wage? It turns out the minimum-wage law helps eliminate some of the competition.
Watch the video here:
Host Charles Payne asked whether Williams was inferring that unions have been part of a â€œcovert planâ€ to keep black people from getting the better paying jobs? Williams said yes.
â€œWell, they always have done that,â€ Williams said. â€œIf you look at the justification for the David-Bacon Act, which is the federal minimum wage or super minimum-wage if you look at the legislative debate in 1931, unions were major supporters and they want to protect white workers from having to compete with black workers in construction.â€
You have to remember, at the time of the first debates over the minimum wage, the South was still trying to recover from the devastation of the Civil War. The North had infrastructure but the South had cheap labor, so the South was able to lure business growth with their labor advantage. The Northern Congresscritters tried to make it sound like they were just looking out for the little man, but in real life, they were destroying the Southerners’ chance to market the only asset they had.
By their actions, they drove the South into the pits of a Great Depression from which they have still not completely recovered. And to make sure they never do, Congress continues their same policies, which sound good to vulnerable ears, but are destructive to the very people they purport to help.
And don’t try to tell me the Ds in Congress don’t know this. They are the Evil Party, we’re the Stupid one. Democrats in Congress are just keeping their plantation of poor, uneducated, hopeless people fully staffed.
And don’t even get me started on Democrats’ heroic efforts to prevent any and all educational system reforms. The teachers’ unions own them, lock, stock and barrel. There is no way they’re going to consider the needs of poor, inner city children when there are union dues to be harvested.
The Party of the Little Man my ass.