Some good news was reported last week on the New Mexico economic front. According to the Albuquerque Journal, a company called Green Rubber Global is going to set up a headquarters in Albuquerque and open a state-of-the-art tire recycling business in state. No one can dispute the fact that this is good news for the state economy or that tire recycling fits in well with the overall “green” development model that is driving development in the state.
Of course, a few days later the Journal ran another piece (subscription required) outlining the $3.9 million incentive package the state is offering Green Rubber in order for them to build a $30 million plant. Of course, this project will be a boon to New Mexico’s economy in the end, but wouldn’t it be great if taxes were and regulations were made reasonable for every business owner in the state and not just those making a $30 million upfront investment in a politically-favored business model?
I don’t know why you say “of course” the rubber plant will be a boon to the economy. The heavy subsidies necessary to get it going are evidence that the market considers it to be a risky endeavour. I’d advise the state to go for something more secure, like a Toyota dealership.
And since when does Mel Gibson need or deserve $3.9 million in corporate welfare? Oh yeah, Bill Richardson’s running for president and won’t pass up a chance to funnel state money to Hollywood in a bid for Hollywood money to be funneled to his campaign.
The “green” development model is driving development in the state–the development of bigger government involvement in the economy.