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The Great American Jobs Swindle

CorpWatch : The Great American Jobs Scam


It's the Great American Jobs Scam: an intentionally constructed system that enables corporations to exact huge taxpayer subsidies by promising quality jobs - and then lets them fail to deliver. The other benefit often promised - higher tax revenues - often proves false or exaggerated as well.
Take for example: New York City, which must hold the record for job blackmail, though it is hardly alone. One study of 80 companies that had received "retention" subsidies from the Big Apple found that at least 39 had later announced major layoffs, or they had entered into large-scale mergers or put themselves up for sale - events that usually trigger mass layoffs. A detailed analysis of 10 subsidized companies found they had a total loss of more than 3,000 jobs.

Bank of America, for example, received two "job retention" subsidies from New York City, in 1993 and in 2004. The 1993 subsidy was given to induce the bank to move employees into the World Trade Center following the 1993 bombing. In exchange for at least $18 million in benefits, the bank promised to retain at least 1,700 jobs in Tower One for 15 years. Instead, it laid off at least 800 people in 1997 after merging with Security Pacific National Bank. This was such a severe drop in employment that the city canceled the subsidy in 1998, but didn't require Bank of America to refund any past subsidies.

Y'know, if I made a promise to do something and took seventeen million dollars from you, and then failed to actually do the thing I promised, wouldn't you be pissed? Wouldn't you want your money back?