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.
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