According to Jake Frankel's article, It's the Economy, Stupid [Dec. 15, 2010 Xpress), the Buncombe County Commissioners approved a "$99.74 million federal stimulus loan to Ingles Markets Inc." The loan is to help Ingles [expand] their facility in Black Mountain. The "completed projects would create at least 190 new full-time jobs, plus an unspecified number of temporary construction jobs," according to the company.
Now, I like that Ingles is a local company. I spend money in one of their many grocery stores nearly every week. However, this action amounts to loaning the company almost $535,000 per permanent job created. Even if this money comes from the federal government, is this the best use of our tax dollars? Hell, loan me a fraction of that sum — say a modest $100,000 as a round number — with the same loan conditions, and I promise to create a permanent job with a living wage right here in Asheville. That would save taxpayers money and create a job! Plus, if more people joined me, we could potentially create almost 1,000 new jobs! For those of you bad at math, 1,000 is a lot bigger than 190.
This is the kind of action that politicians love: They say they're creating jobs and everyone wins. Everyone, that is, except the taxpayers and possibly even the 190 individuals who get those likely low-paying warehouse jobs. If politicians (including our county commissioners) really want to spark the local economy, I think they should help local small businesses that employ most of the population anyway. Ingles is a big, successful corporation. Do they really need the help more than 10, 100 or even 1,000 local small businesses? What is ultimately the best way to use that $99.74 million to create new jobs?
I have my answers; what are some of yours?
— Mark Bloom
Asheville
First, it is a loan and not a grant. Second, every job created has a multiple rippling effect through the local economy. Third, it increases the local tax base. Aside from all that, I would agree that government should not really be in the business of making business loans.
Mark, thanks for doing the math…gotta wonder who is really benefitting here. How much interest, is sit a sweetheart deal for low pay jobs. Questions, questions, questions.