Musings from Brian J. Noggle: $17,000,000 Doesn't Get Much These Days

$17,000,000 Doesn't Get Much These Days

What can local and state governments expect for $17,000,000 in giveaways to large corporations to keep their plants open?

Not a whole hell of a lot:

Two years ago, Ford Motor Co.'s assembly plant in Hazelwood survived plans to close it after an intense state and community campaign persuaded the company to keep it open through 2007.

Now, the Hazelwood plant may be forced to run a similar gantlet after Ford rolls out a restructuring plan late this year.

Excess production capacity continues to weigh heavily on the automaker. The plant in Hazelwood, where about 1,450 people work, is among the company's most vulnerable facilities.

Never fear, though; the local and state governments are ready to spring into spending to throw bad taxpayer money after bad:

Still, it's too early to speculate about the Hazelwood plant's future, said Hazelwood Mayor T.R. Carr. He's a member of the Ford Hazelwood Task Force, the group of state and local politicians, business and labor leaders formed in 2002 after Ford announced it would close the plant.

"What is 'obvious' is not necessarily true," Carr said. "There are a lot of decisions that are up in the air for Ford right now."

The region needs to focus on building a business plan that will encourage Ford to bring a new vehicle to replace the Explorer at the Hazelwood plant, he said.

We've spent $12,000 per employee already to keep those employees working for a coouple of years; soon, we will have spent the equivalent of a full college education for each (in state tuition for public universities, but hey, it's an education). What equivalent amount of money will be enough? Masters degrees? Doctorates? Eventually, Ford will close the plant, and the money will be just as lost.

Not that it's the government's job to develop business plans, but I'll help, no consulting fees attached: you know what kind of business plan calls for spending more and more money on a failing proposition? A bad business plan.

Let's return to Carr for the most appropriate, although inappropriately so, metaphor:

"It's kind of like (Cardinal baseball player Albert) Pujols ... the game's not over, and we're going to stay at bat until we secure a future for this plant," he said.

Timely, sir, and it connects with the little people too unintelligent to see what bull you're selling.

Unfortunately, Albert Pujols' ninth inning home run in game five of the National League Championship Series only saved one game, forestalling the Cardinals eventual loss to the Houston Astros by a single game and a couple of games. Much like your business plan and next set of tax incentives will delay Ford's decision to close the plant for another short interval; but if it's in Ford's best business interest to close the plant, it will close the plant.

Perhaps it's time to let the air out of the Keynesian tires and abandon the plant on the side of the road.

- posted by Brian J. @ 6:26 PM