Washington D.C. and Detroit say ‘No’ to Wal-Mart because they don’t need Jobs or Shelves full of Low-Priced Goods

Posted by PITHOCRATES - July 20th, 2013

Week in Review

The Democrats hate Wal-Mart.  As do unions.  Because Wal-Mart stores do not have union labor.  Unions hate that.  And because Democrats and unions are joined at the hip, Democrats hate what unions hate.  Which is why you won’t find Wal-Mart stores in big Democrat cities.  Because the Democrats do everything they can to keep them out.  Even writing laws specifically targeting Wal-Mart (see Trouble in store: Why Walmart has failed to woo Washington by Rupert Cornwell posted 7/21/2013 on The Independent).

Walmart has been wooing [Washington D.C.] for years, and in 2010 announced plans to open four stores there, a number subsequently raised to six. Everything was going swimmingly, with work already started on three of the sites, until earlier this month, when the council passed its Large Retailer Accountability Act, otherwise known as “Get Walmart”.

Under it, non-unionised stores with a commercial space of 75,000ft or more – ie Walmart – will henceforth have to pay employees at least $12.50 (£8.20) an hour, compared with the city’s existing minimum wage of $8.25, and the national one of just $7.25 an hour. The company retorted by threatening to scrap three of the planned stores at once, and perhaps abandon the three where construction has begun too, causing the loss of up to 1,800 new jobs…

The case for Walmart is strong – that its stores provide working-class Americans (and many wealthier ones too) with good service and a broad selection of goods “at the lowest prices possible”, to use the words of old Sam Walton, who opened his first store in Rogers, Arkansas, in 1962. And it provides jobs: 1.4 million of them in the US alone…

Nor is Washington DC alone in feeling that way. Five of the country’s other largest cities – San Francisco, Detroit, Seattle, Boston and, above all, New York – have also said no. “As long as Walmart’s behaviour remains the same, they’re not welcome in New York City,” says Christine Quinn, the New York City council speaker who may well be the next mayor. “New York isn’t changing. Walmart has to change.”

Not by coincidence all those cities, like DC, are Democratic strongholds where unions are strong. They are liberal, socially “progressive” and, by definition, urban, while Walmart’s genes are southern, conservative and suburban.

Detroit said ‘no’ to Wal-Mart?  The city that just filed the largest municipal bankruptcy in history said they don’t need jobs or low prices on food, clothing, pharmacy and household goods?  If you’re looking for the answer to why Detroit is in the mess it is in this is your answer.  The Democrat stronghold in Detroit got so anti-business that it chased all the jobs out of the city.  Once the jobs left the people soon followed.  First the whites.  Accelerating their ‘white-flight’ following the Detroit riots.  While the blacks held on.  But after 20 years (1974 – 1994) of Coleman A. Young they gave up, too.  For they don’t come further left than Coleman A. Young.  And when you’re that far left you’re no friend to business.  So businesses stay away.  As do their jobs.

The black middle class followed the whites out of Detroit.  In pursuit of greener pastures.  And jobs.  Leaving Detroit with half the population it once had.  Impoverished.  And more anti-business than ever.  Which is why they said ‘no’ to Wal-Mart.  Because Wal-Mart isn’t union.  And the two largest employers in the city, the City of Detroit and the Detroit Public Schools, are union strongholds.  So they protected their high pay and benefit packages.  By keeping nonunion jobs out of the city.  While thinking nothing of the unemployed masses in the city.  Helping to keep the unemployment rate in Detroit well above the national average.  While the unemployed masses would have loved to see up to six new Wal-Mart stores (or more) opening in the city.  The 1,800 new jobs (or more) that would have came with them.  And shelves full of food, clothing, pharmacy and household goods at low prices that their Wal-Mart paycheck could easily afford.  But no.  Wal-Mart is not union.  So the people of Detroit have to stay unemployed.  And impoverished.

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Democrat Political Cronies profit well from Energy Department Loan Guarantees and Stimulus Spending

Posted by PITHOCRATES - July 29th, 2012

Week in Review

Thomas Jefferson did not want the federal government to have money.  This is where he parted ways with Alexander Hamilton.   Hamilton wanted to give the federal government money to spend to jumpstart American industry.  To make it an empire to rival the British Empire.  But Jefferson looked at world history and saw nothing but examples of corruption whenever money and government intertwined.  This is one reason why Washington D.C. is where it is.  Because the big financiers were in New York City.  Which in those days was on the other side of the world from Washington D.C.  Something he hoped would keep money out of the hands of the federal government.  For awhile at least.

Fast forward to today.  Where we have a bloated federal government the size of which would have sickened Jefferson.  And seeing the amount of money it spent would have killed him.  The Department of Energy guaranteeing loans?  And a trillion dollar stimulus bill?  Had he lived he would have suspected some heinous Hamiltonian plot.  For neither would have happened in a Jefferson presidency.  For he knew it would only lead to corruption.  Like it has (see Solyndra, Cronyism, and Double-Dipping on the Taxpayers’ Dime by Nancy Pfotenhauer posted 7/23/2012 on U.S. News & World Report).

Solyndra became the poster child of spectacularly poor political and policy judgment when it filed for bankruptcy, laid off a thousand employees, and left taxpayers holding the bag on $535 million in loan guarantees. In testimony Thursday before the House Committee on Oversight and Government Reform, the other shoe dropped. Apparently, many of the companies that received loans under the auspices of the same infamous program were well-established entities that essentially double-dipped to grab as many taxpayer dollars as possible…

According to Mercatus scholar Veronique de Rugy’s testimony, approximately 90 percent of the [Department of Energy’s Section] 1705 program loans went to subsidize power plants often backed by big companies with extensive resources…

Now comes the double dip: Companies such as NRG Energy Inc.—closely linked to Senate Majority Leader Harry Reid—not only received $3.8 billion 1705 loans (almost a quarter of the total), but three subentities of the same company received a total of at least 39 grants under the stimulus law…

While happily House Republicans are moving to end the Energy Department’s loan guarantee program, the Export-Import Bank, reauthorized in May in a rush of bipartisan irresponsibility, was part of the double-dipping in a particularly distressing manner.  According to de Rugy, First Solar raked in $646 million in 1705 loan guarantees through partner Exelon and landed another $547.7 million of the same from the Ex-IM bank…

…Some of the Ex-Im money went to a Canadian company named St. Clair Solar, which is a wholly owned subsidiary of First Solar. St. Clair Solar received a total of $192.9 million broken into two loans to buy solar panels from First Solar. In other words, the company received a loan to buy solar panels from itself.  (emphasis added)

Loaning money to a company so it can buy from itself?  That just isn’t right.  And $3.8 billion going to a crony of Majority Leader Harry Reid?  No wonder the Democrats are all for green energy initiatives and stimulus spending.  They get to take care of their friends.  Get some of that money in return.  And live very well courtesy of the taxpayers who they are stealing from.  Of course they will deny this.  Saying people (i.e., rich people like them) will eventually spend this money in the economy.  That when they and their friends buy expensive cars, private planes, large houses, expensive wines, vacation junkets, etc., they are creating jobs in the economy.  Generating economic activity.  Which is what a stimulus is supposed to do.  And they will say this with righteous indignation.  But what they won’t say is how much middle class economic activity their high taxes kill in the private sector.  And how much their deficit spending adds to the national debt.  Which has already lowered America’s debt rating once.  Which is just a sign of the devastation their reckless spending will cause us.  And our children.

We should follow Jefferson’s advice.  And limit the amount of money government can spend.  Defense spending?  Yes.  Intervening into the private economy?  No.  Because loan guarantees and stimulus spending don’t help anyone but those spending the money.  Our politicians.  And their cronies.  For Jefferson was right.  Nothing but corruption comes from intertwining money and government.

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