Monday on Greenwich Cove


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After a long weekend of work, I took some time today to reacquaint myself with Greenwich Cove. In the morning, I went down to the old town dump, now called Scalloptown Park. Then in the afternoon I headed over to Goddard Park on the other side of the Cove. Here are some of the pictures I took and tweets I sent out while there.

RI – What Went Wrong, In Seven Installments


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Sam Bell did such a good job putting together this series on what went wrong with Rhode Island’s economy over the past several years, I thought the least I could do is make it really easy for everyone to access.

RI Spends More Than Neighbors on Tax Breaks


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Rhode Island spends more per capita and more per dollar of state budget in tax incentives and expenditures than most nearby states, according to an investigation by the New York Times that examines the value of such corporate giveaways in an era of government austerity.

The series is called, “Unites States of Subsidies” and the first piece is called “How Taxpayers Bankroll Business.”

“Despite their scale, state and local incentives have barely been part of the national debate on the economic crisis,” according to the first piece of the Times series. “The budget negotiations under way in Washington have not addressed whether the incentives are worth the cost, even though 20 percent of state and local budgets come from federal spending.”

Rhode Island, according to the investigation, gives away $356 million in tax subsidies annually according to the Times study. That’s about the same as the state saved by reforming pensions. You can check out the data on RI here and compare it to other states.

UPDATE: According to a Providence Journal story, “Paul L. Dion, head of the state Office of Revenue Analysis, says that the $156 million, which the Times cites as coming from a ‘Food and Food Ingredients Exemption,’ represents the state’s lost revenue from not subjecting groceries to the state’s 7 percent sales tax.”

While both Massachusetts and New York giveaway billions of dollars each year, they each have much larger state budgets than Rhode Island. Only Vermont and Maine spend more per dollar of state budget on tax giveaways.

As far as revenue lost to tax expenditures per capita, or per person, Rhode Island is the third highest in the region. Again, Vermont and Maine are much higher. Massachusetts ($345 per capita) spends $7 more than Rhode Island ($338) on tax expenditures per person.

Rhode Island, according to the study, loses $272 million annually in sales tax deductions, discounts and exemptions. We give away $59.9 million annually in corporate tax credits, and $15.5 million in personal income tax credits.

GoLocalProv puts together this list of the biggest beneficiaries of tax breaks in Rhode Island:

  1. 38 Studios – $75  million
  2. CVS – $70 million
  3. Fidelity – $17 million
  4. Brotherhood (Showtime TV show) – $15.6 million
  5. Bank of America – $7.88 million
  6. Bridesmaid (movie) $4.14 million
  7. Corporate Marketplace – $4 million
  8. Hachiko Productions – $3.8 million
  9. Page Productions – $3.46 million
  10. Twin River – $2.67 million

 

Bishop Tobin and His ‘Wizard of Oz’ Logic

The Wizard of Oz revealed

John DePetro has long referred to Governor Lincoln Chafee by the insulting and disrespectful name of “Governor Gump.” DePetro has taken the name “Gump” from the 1994 Tom Hanks movie Forrest Gump, the implication being that Chafee is in some way as mentally handicapped as the titular character.

But there is an older use of the word, dating back to L. Frank Baum’s 1904 sequel to his children’s book The Wizard of Oz entitled The Marvelous Land of Oz. In this book a gump is a magnificent elk-like creature common throughout Oz.

This thought occurred to me as I listened Friday morning to Providence Diocese’s Bishop Thomas Tobin on the John DePetro Show. Speaking about the made up controversy regarding the Holiday Tree/Christmas Tree, Tobin compared Governor Chafee to the Wizard from the 1939 The Wizard of Oz movie:

In many ways the Governor is like the Wizard of Oz, the man behind the curtain in the movie. The Wizard of Oz who creates an illusion, who creates a fantasy land he thinks everyone else lives in, but in fact it’s a different world.

Who would have thought that the radio shock jock and the Catholic bishop would be so enamored of old children’s books? Putting aside DePetro’s comparison, which is infantile and unworthy of serious consideration, let’s take a closer look at Tobin’s literary metaphor.

When we think of the Wizard, in either the original novel or in the movie, we think of a man who claims to have magic powers. This man deceives the gullible and the ignorant, and uses deception to ensure his own political, temporal and secular power. We all know the famous line, “Pay no attention to the man behind the curtain!” But the Wizard, when exposed as a fraud and confronted with his lies, ultimately confesses that he is, after all, just a “humbug.”

I bet you see where I am going with this. Just as a comparison to the mentally handicapped Forrest Gump is better suited to John DePetro than to DePetro’s intended target, so is the comparison of the Wizard of Oz much more suited to Bishop Tobin than to Governor Chafee.

Tobin is, after all, a man who makes outrageous, unverifiable claims about reality. He claims to have the power to bless people and things. He claims the magical power of being able to transform wine into blood and bread into flesh. He tells the gullible and the ignorant magical stories about himself and others. Unlike Governor Chafee, it is Tobin who lives in an illusory fantasy land. Tobin’s title, “Bishop,” possesses the same sense of medieval gravitas as the word “Wizard,” though I’m sure your average peasant feared the politically and religiously ruthless Bishops more than they did the spells of faraway and mostly mythical Wizards.

In L. Frank Baum’s original novel, the Wizard forces the inhabitants of the Emerald City to wear green tinted glasses in order to fool them into thinking the city is made from precious gems. We have an idiom about the folly of seeing the world through “rose-colored glasses” rather than as it truly is. But whether the lenses are tinted green, rose or Catholic, one’s perception of reality is “colored” and our relationship with the world becomes warped and perhaps even dangerous.

The difference between Bishop Tobin and the Wizard of Oz is simply that the Wizard knows better than to believe his own hype. The Wizard knows that he is deceiving people and when confronted with reality the Wizard is man enough to admit his wrongdoings and to try and make amends. Of course, The Wizard of Oz is a book for children, and the novel’s reality is simple and justice is almost always ensured. Here in the real world things are more complex. Liars and mendicants, even when revealed, either double down on their claims or move onto the next gullible victims.

Here in the real world, justice and happy endings are rare.

ALEC: Bad for the Economy


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Last year, there was a lot of talk  here about ALEC, the American Legislative Exchange Council.  This corporate-backed “research” group produces model legislation for the states and recruits and promotes legislators who are likely to introduce it.  It’s a pretty slick outfit, well-funded, with lots of opportunities for travel, and lots of opportunities to make member legislators feel good about carrying the water of large corporations.

Soon-to-be-ex-Representative Jon Brien from Woonsocket was on the board of directors, and it turned out that quite a number of state representatives and senators were members – one out of every five. ALEC’s policy agenda is pretty much the standard-issue corporate pabulum: lower taxes, cut spending so we can all live in a capitalist paradise.  That sort of thing.  If you’re reading here, you probably know the drill.

So imagine my delight when some smart researcher in Iowa realized that ALEC has been around long enough to have a track record.  And if there’s a track record, you can measure it and see how good it is.  So how do they do?

Not so great, it turns out.  In fact, ALEC issues a ranking of how well states conform to its vision of all that is great and good, and it turns out that the states who do best in ALEC’s rankings have seen lower economic growth, more poverty, and lower state revenues over the years 2007-2011.

So the lesson is clear: ALEC’s advice is pretty much the opposite of good advice.  Following their suggestions for economic growth seems to be an ideal way to lower median family income, lose jobs, and increase the poverty rate.

In other words, the policies that make up the Economic Outlook Ranking are not a recipe for growth and prosperity. If anything, they are quite the opposite: They are a recipe for economic inequality, low wages, and stagnant incomes that at the same time deprive state and local governments of the revenue needed to maintain the public infrastructure and education systems that are the underpinnings of long term economic growth

Lots of the figures from the report are here.

So where does Rhode Island fall on the ALEC scale?  According to the “Rich State, Poor State” report, we’re 43d in ALEC’s rankings.  So how do we make our economy better?  Probably not by trying to move up in their ranking.  ALEC’s advice is bad advice.