Some 'Unshackle Upstate' proposals pose problems

(Rochester Business Journal)

"Unshackle Upstate, a Growth Strategy for a Stagnant Economy" is being touted by the Rochester Business Alliance and the Business Council of New York State as a blueprint for revitalizing our economy.  A careful reading of the document reveals the same corporate driven Chamber of Commerce agenda that has been vicitimizing America’s working families for the last quarter century.

According to the Unshackle Upstate proposal our community lost 33% of it's manufacturing jobs over the last in 14 years.  Subsequently, it claims for each loss of 4 well paying manufacturing jobs we have lost an additional 3 jobs in other sectors.  It goes on the claim that comparatively the rest of the Country "only lost" 19% of  it’s manufacturing jobs during the same period. 

The proposal then claims New York State Taxes should be lowered to the same level as competing states. I guess that means we should  aim lower and set our sites on “only loosing 19%” of our manufacturing jobs. 

The business community proposes these major tax cuts be funded through the elimination of the laws and regulations that protect family sustaining wages or prevailing wages.  They suggest we eliminate  binding arbitration for public employees, (singling out for special attention police and firefighters), removing competitive bidding for public projects, eliminating and/or reducing taxes on electricity and natural gas, cutting  Medicaid (particularly nursing home care), and cutting worker's safety protections.  Sounds like de ja vue all over again and again and again.

The Business Alliance attempts to blame the loss of these manufacturing jobs on regulatory costs, taxes and the safety regulations. They make no mention of the devastating impact trade agreements such as  NAFTA to CAFTA have had on the manufacturing sector. 

These trade agreements are not just about the flow of commerce over borders, but about regulation, privaization and a race to the bottom of the economic ladder.  They have given us a free market with no labor, safety or environmental standards.  A formula not for progress, but de-civilization and a world less free.

 It is the Business Alliance and its parent organization, the US Chamber of Commerce that are most responsible for the loss of good jobs.  They promised opening foreign markets would increase demand and jobs, but the only thing free trade really brought to the table was our wages, benefits, worker rights and jobs.  Americans have been told that American Corporations selling American products to Americans with outsourced exploited labor is "Free Trade" and a good thing.

I agree with the Business Alliance that our property and school taxes are too high, but only because I see these as regressive taxes that hurt working families and small businesses.  Over the last quarter century we have cut dramatically taxes for large coporations and the wealthy, while redistributing the wealth upward and increasing the tax burden for the middle class

When it comes to property and school taxes, I would happily pay my current share if I knew it was based on a progressive state income tax system.  It is Corporate America and the rich in their unholy alliance with government that has destroyed the progressive tax structure and left us trying to finance education, infrastructure, health care, and other services with regressive taxes that are unfair to working families. Don’t forget to add sales taxes and fixed payroll taxes to the school and property tax burden we already carry for corporate welfare. 

The Business Alliance proposal  also attacks the cost of energy in New York compared to other states, but takes no responsibility for increased energy costs that have resulted from  policies of deregulation and privatization.

Again business promised deregulation would spur competition and lower energy costs.  This policy, along with the theft of public resources by business, or privatization of public work, has strengthened the oil monopoly/cartel and left our public utilities unable to invest in a deteriorating power grid. For public utilities investing in the power grid now puts them at a competitive disadvantage.

 The need to invest in the grid will hurt average Americans and small to midsize businesses down the road when the real bill comes due.  The business agenda put us in this position.   I have written extensively on the social and economic cost of deregulation to Californias utilities.  I wrote as recently as January warning of the same thing for phone service, an article followed by strong objections from the Public Service Commission saying I was wrong. 

It is difficult to comment in depth on all of Unshackle Upstate proposals in one article, but their agenda for giving upstate business more say in project funding and over taxpayer spending is a good start, but short on specifics.  How about some accountability for creating good jobs while insuring taxpayer dollars are not squandered for personal gain?

The business alliance opposes competitive bidding, specifically the Wickes Law.  Recently, a dormitory project at Monroe Community College became a "private project" requiring no state mandated prevailing wages and no competitive bidding.  The Contractor, who has contributed a quarter of a million dollars to the ruling County political party,  now can shop bidding among contractors to see who will pay the lowest wages while he pockets the difference.

However, from "Unshackle Upstate" one would think the Business Alliance was for more accountability for long term economic development, taxpayer funds and the creation of strong businesses with good jobs.  Their recent actions would indicate otherwise. 

When it comes to accountability for tax money to business we must reform our IDA's including our own County of Monroe Industrial Development Agency.  From 2002-2204 Comida gave $29 million plus in tax breaks, waivers and incentives to 228 projects.  Of that money, $13.6 million was lost revenue to our school districts.  This money has been made up in our property and school taxes.  What we received in return where many poverty level jobs while 63% of these projects did not deliver the jobs promised and 27% actually lost jobs.

 Even the conservative Gannett Democrat and Chronicle has championed such accountability for Comida.  A Bi-partisan bill in the State Senate and Legislature addresses these very issues.  The Business Alliance silence on this issue is deafening.

 If nothing else "Bid Business" is consistent.  They have no problem rationalizing the magic of the free market while holding out their hand to government and taxpayers for subsidies that they would call socialism if those monies went to working people.

No, "Unshackle Upstate" is not the solution, it embodies the problem

For those of you who noted the passing of the great economist, John Kenneth Galbraith, he wrote almost 40 years ago that corporate power was slowly overwhelming society.  He was a political economist who believed government's role was economic policy that uplifted all of society, not just a few.  Well into his nineties, when asked how he now felt about technology when a touch of a computer key could send vast amounts of resources and jobs overseas, he simply replied that we shouldn't confuse technology with stupidity and greed.  For the most part I believe Mr. Galbraith would think that most of "Unshackle Upstate" is part of a larger policy that is the problem, not the answer.

-Jim Bertolone