George Hartzman has a most excellent post regarding the close proximity of the Chatham-Randolph mega site, a completed mega site, and the Greensboro-Randolph fledgling mega site. One should consider visiting the post as it includes plenty of useful data and links:
Yes, no one would be that stupid, which is likely Mr. Hartzman’s point. Meaning, "stupidity" is not the cause for expending $22.5 million.
One can clearly state, with great certainty, that the deployment of $22.5 million to a fledgling mega site, roughly 10 miles from a completed mega site, has nothing to do with free markets or capitalism. That is, capitalism is much different than "rich-friendly legislation" -or- "politicos through the mechanism of government granting privilege".
Win, lose or draw someone will make money at the expense of taxpayers. The only "failure" possible, is for the taxpayer to fail.
Better yet, say there really is one elusive auto assembly plant out there. The more empty mega sites the better for the rent-seekers of the elusive auto assembly plant. Is it better to have 180 empty mega sites or 181 empty mega sites if you are the elusive auto assembly plant? 181 of course!
Putting the above observations into an action phase: Elusive auto assembly plant X finally strikes its colors and becomes a known-known looking for a location. Beyond the taxpayer funded resources already sunk into many of the 181 mega sites, X can now demand a premium price to locate as only one winner will emerge and 180 empties will remain.
Taxpayer money will be ramped up as the sweetener with the final winner really being the final loser regarding the taxpayer. The taxpayers associated with the remaining 180 empty sites being losers as well.
Regardless of the 181 taxpayer losers, select and particular winners will emerge, at taxpayer expense.
Saturday, February 28, 2015
Redux: Who would be stupid enough to spend $22.5 million to get water and sewer to a Megasite, about 10 miles away from another that already has it?
Labels: 180 empty mega sites, Crony Capitalism, Crony Socialism, George Hartzman, other people's money, rent-seeking, taxpayers as losers
BS Economics, cum laude, Private and Public Sectors, 1979, West Virginia University, Morgantown, WV. Undergraduate Minor in General Insurance. Chartered Life Underwriter (CLU), Huebner School of Economics, American College, 1992, Bryn Mawr, PA. Life Underwriter Training Fellow (LUTCF), 1986, National Association of Life Underwriters, Washington D.C.. Currently enrolled and completed one half of Chartered Property and Casualty Underwriter (CPCU) from the American College. 38 years insurance industry experience.