At what point do we stop bailing out businesses and people?

From the Delaware Liberal:

Zombie Casino Alert!

October 27th, 2011 • 

By cassandra_m

It’s not quite the Zombie Apocalpyse (Casino Edition), but Delaware’s casinos have formally asked for the state to make them healthy.  Or, at least, healthier.  According to this NJ article, Delaware’s casinos will be asking for givebacks to the tune of $10M on licence fees as well as for the state to reduce the taxes on the games and slots.  And look why they want to reduce their contribution to the state coffers:

Sutor said the tax and licensing fee breaks are necessary to bolster Delaware’s gambling industry, which has taken a serious hit because of aggressive competition in a regional market that now features casinos in Pennsylvania, Maryland, New Jersey and West Virginia.

We knew this was coming.  Just not this fast.  But casinos asking for the state to make them profitable is the best reason ever for the state to not be in this business.  This is a volatile industry that the government is counting on some stable revenues from, AND these captains of industry have decided that they can be profitable at the expense of taxpayers.  These are the same captains of industry who are counting on the state to restrict additional competition in the form of new venues at the beach and/or in Wilmington.  This is a textbook example in how governments get captured by an industry — and how an industry relies on the government for its survival, rather than on outcompeting your competitors in a free market.

More at the link.

First it was the banks, then it was the automobile manufacturers, then it was students who took on too much in student loans, then it was people who bought more house than they could afford, and now we even see a total luxury industry thinking that they, too, deserve a government bailout.

And why not? When the government bailed out General Motors and Chrysler, it wasn’t because we’d not have any new cars built if those corporations failed — Ford and the imports would still have been available — bu8t because we couldn’t stand to see all those hard-working employees lose their jobs. Well, by that logic, why aren’t we just as concerned with all of the hard-working people at the casinos?

Fortunately, it seems as though, although Governor Markell is willing to work with the casinos, he’s very leery about a large-scale bailout.

4 Comments

  1. “First it was the banks, then it was the automobile manufacturers, then it was students who took on too much in student loans, then it was people who bought more house than they could afford, and now we even see a total luxury industry thinking that they, too, deserve a government bailout.”

    Let’s look at the outcomes of all these government programs which Dana hates:

    1. TARP, which bailed out some financial institutions, saved us from Great Depression II, most experts agree.

    2. ARA, the stimulus plan, cut taxes and created jobs, providing us now with 9 successive quarters of GDP growth.

    3. Loans to GM and Chrysler turned both companies around, saved tens of thousands of jobs, so that now both companies are profitable and paying back their government loans, and, all, including Ford, more workers are being hired.

    4. On the DE lotteries, for the same reason, I support government assistance at this time, which is actually an investment for better times, at which time the investment will be paid off with plenty of interest.

    I think what you have yet to internalize, Dana, that we taxpayers have an obligation to help our fellow man during hard times, this being one. I look at it as being an investment for the future, which is standard practice by governments world-wide, especially in the productive Far East.

    And now of all things, we have the Europeans going to the Chinese, hat in hand, to solicit their support to help the struggling Europeans. Of course I expect the Chinese government to help out with appropriate loans, because it is in their general interest to do so.

    I question whether you understand these proper roles of government, or is it too much of a strain on your small government ideology to step back and contemplate these approaches to problem solving.

    Paul Ryan does not have the answers, when the focus of his latest speech was class envy and warfare, small government, and no taxes.

  2. Why don’t you just go join OWS, Dana?

    Bailing out casinos is just the sort of thing you’d expect from crony capitalism where politicians are bought by corporations – which you have been loudly arguing for in support of for years. Indeed, there’s not that much difference between investment banks and casinos any more.

    Perry is right in part but misses the truly evil part of those bailouts, which is covered in “Freefall” by Joseph Stiglitz.

    You’re not even right in part because you support the government letting the economy crash and burn rather than intervene because of SOOOOOCCCCIALLLLLISM!!!!!!eleventyone!! while being just fine and dandy with the corporate oligarchy which is really wrecking your country.

    [retrieved - pH]

  3. “If you can’t make money by running a casino, you should really just give up.”

    Jeff, does this mean that you think that business at a casino is not dependent on the economy?

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