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Musings from a writer
Archive for 200802 ( return to current blog )
Wednesday February 6, 2008
It has become fashionable for businesses of all sizes to demand a handout as a condition of expanding their operations in a community. So it really was no surprise when Cabela's approached the Washington County (Wis.) board of supervisors in 2006 looking for an “incen-tive” as the firm was contemplating a move into southeast Wisconsin.
Claiming that their new store would become a tourist magnet for the area around Richfield, Wis., Cabela’s’ representatives painted a rosy picture for their new development and the positive impact it supposedly would have on the area. Never mind that Cabela’s could easily afford to open another store. In 2005 the firm earned approximately $115 million on sales of nearly $1.8 billion.
Regardless, the Sydney, Neb.-based chain received $4 million in “incentives” from the taxpayers of Washington County. Construction proceeded, and the store opened in September, 2006. That’s not the end of the story, however.
Just this week, a competitor, Sportsman’s Warehouse, Inc., announced that it is closing its store in West Bend, Wis., about 15 miles from the new Cabela’s store. A news release issued by the firm doesn’t state why, but one can assume that Cabela’s store drew away a lot of traffic. That’s fine by itself. Competition, after all, is a hallmark of our free-market system.
The problem is that taxpayers greased the skids for Sportsman’s demise, and in the process helped put 63 people out of work. Oh, but look at the new jobs created and property tax revenue generated, the Cabela’s folks with say. That’s true, but it would’ve happened anyway. The firm has a strong reputation for drawing large crowds through its huge presence and impressive displays. Cabela’s did not need the extra money.
Washington County supervisors should’ve stood firm when Cabela’s asked for a handout. Business people need to be reminded that in a free-market society they are on their own. Indeed, they should shun government. Government means two things: taxation and regulation.
Yet today it’s customary for business people to ask for a handout before proceeding with a project. They’ll often pit one community or state against another to see which will offer the most “incentives”. It’s a form of prostitution, with the welfare-capitalist business owners pulling all the strings. This must stop. But it won’t until politicians develop the guts to stand firm.
| | Posted by Brit303 at 9:28 AM - | |
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Sunday February 3, 2008
Here we go again. Another new year, another rate hike for the power company.
Customers throughout southeastern Wisconsin got a nice jolt recently when they opened their electric bills. Consumer rates had recently increased approximately 15 percent, and now stand at about 11.75 cents per kilowatt hour.
With all the talk lately of trying to go "green" in the house and elsewhere, people are looking for ways to cut back on their electricity consumption. One goal, of course, is to reduce their carbon footprint--an impossibility for most people, as their power company burns fossil fuel to generate electricity.
But they also hope to cut their electric bills. Use less electricity, save money, right? Not if you're served by WE Energies (or Weenergies, as locals like to call the firm). Here, you can cut back and still face an increase in your bill. Weenergies claims it needs more money to pay for an expansion at one of its plants. Naturally the Wisconsin Public Service Commission OK's the rate request. We're supposed to be relieved, though, because the power company originally asked for an increase of more than 20 percent.
With no competition to turn to, consumers can only bite the bullet. And you know this is not the last rate hike we'll ever see. We can look forward to ever higher electric bills, despite the best efforts of consumers (residents and businesses) to cut back on consumption.
| | Posted by Brit303 at 5:25 PM - | |
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