Skip to main content

Wisconsin Economic Development Corporation (WEDC) #Fail

What does success look like to Scott Walker and the WEDC?

Some things human beings do, are best kept quiet. If you get caught paying way too much for a car, washing machine, or a piece of some action in Nigeria - you probably will not run down to the local paper and ask them to print the story. Not true for Scott Walker the CEO of WEDC. He gets scammed, fooled, and rooked and publishes a press release!

This building expansion, along with new product lines being introduced in the coming year, will provide for up to 22 additional manufacturing jobs at our Menomonee Falls plant over the next three years,” said Thalia Maniotis, HR Manager. “In cooperation with the Wisconsin Economic Development Corporation,” added Paula Weiss, VP Finance, “Scan-Pac is eligible for up to $431,000 in tax credits to support the expansion and job creation within the State of Wisconsin.”

22 jobs to be created over 3 years will cost taxpayers $431,000

This is good news in Walker's Wisconsin. Taxpayers will pay $19,590 per job - and this is news? By that yardstick why not just invite the unemployed to line of at the governor's office and hand out $20,000 checks? Walker could easily create a few hundred jobs in one afternoon.

This is real.

The Scan/Scam Pak tax credit award is not an isolated example of the incompetence and administrative stumbling going on in the WEDC for the past two years and is but one small example for the real reason for Walker's failed job creation numbers.

It was not the recall elections, it was not the protests, it is not the way the numbers are compiled by the federal government – it was Scott Walker’s decision to dismantle a department of the state government, and doing so without possessing the education, managerial skills, or administrative skills to make the new department work.

Walker has just posted a press release which clearly underscores his failure, yet here the emperor stands in his new clothes boasting of his success in creating jobs by holding up a $20,000 price tag per job as a trophy to his administrative ability. His new clothes are shredding. He is standing naked in his own chamber of neocon illusion. It ain't pretty!

Maybe, the tax credits are to sooth Scan-Pac's fine fromOSHA for a serious violation of $1,890 for machine guards? Maybe, we will see how Scan-Pac is soon to become a major contributor to Walker's 2014 campaign, as has been the case for so many other of his credited minions in the past like, Bill Gardner, who invested $166,000 in Walker's campaign for governor to get a reward of a cool $14 MILLION in grants for his Wisconsin & Southern Railroad Co.?

Back in the days of the old antiquated Department of Commerce

Once upon a time, before the reign of the Emperor with new clothes, and in another paradigm and place before the dark gloom of neocon spells were cast for the neutralization of the middle class.  

December 10, 2010 8:20 am  MARY SPICUZZA Cap Times

“We were positioned to be not only a center of the line, but to be a manufacturing center as well. Now we are moving from being the leader to the back of the line,” Doyle said. “Eight hundred and ten million dollars that would have gone to create thousands of jobs in Wisconsin will now create jobs in other states.”

The Obama administration is taking back the $810 million awarded to Wisconsin for train projects after Republican Gov.-elect Scott Walker made it clear he will not waver in his opposition to the project.

Now, Walker has sunk Wisconsin into a world where paying $20,000 per job created is great news and worthy of celebration.

Originally posted to on Thu Oct 03, 2013 at 10:30 AM PDT.

Also republished by Badger State Progressive.

Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags


More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

  •  A better angle to this would be to express (2+ / 0-)
    Recommended by:
    campionrules, antooo

    outrage if these state funds went to a one of the governor's cronies, or that type of thing.

    Because $22K is really quite that bargain if the goal is to create jobs (estimates are up to 10x that for jobs created under the ARRA).  This seems like money well spent from that POV.

    •  The key metric (1+ / 0-)
      Recommended by:

      is how much do these jobs pay and are they full time. Even $20k per job created is a bad investment if the job pays $10 an hour or less or is part time. Jobs paying a nonliving wage are actually a drain on the economy given that they require taxpayer subsidies through the public safety net.

      Trickle Down Economics 101: They get the golden parachute, we get the golden shower.

      by NoMoreLies on Thu Oct 03, 2013 at 10:56:59 AM PDT

      [ Parent ]

      •  But these are tax credits, so assuming that (0+ / 0-)

        the state tax rate is something like 5% - then a tax credit means that overall economic activity must have increased by 20x more, or by $400K plus for each of these jobs.

        or for all of them, by millions and millions of dollars - so in that case the economy truly was stimulated.

        I think it's tough to argue against that, from that angle.

        From what I've seen in other situations is that this type of tax break tends to go to cronies of the government official in question in cases when the jobs would have been created even w/o the tax break.

        Out and out corruption, IOW - my point was that if this situation could be taken to that level, it would be much more compelling (on multiple levels!)

    •  ARRA (1+ / 0-)
      Recommended by:
      Jake formerly of the LP

      The ARRA was far more encompassing in its goals and funding targets than mere job creation. The tax credits for Scan-Pac were related to job creation in the press release.

    •  ARRA (0+ / 0-)

      Don't know how the jobs created to amount appropriated by the ARRA was computed. The ARRA was all encompassing with more far reaching goals than job creation, including sustaining jobs already held in many sectors.

  •  Yeah, (1+ / 0-)
    Recommended by:

    This is somewhat hilarious, considering jobs under the ARRA often cost significantly more.

    Had I published a diary in 2010 decrying the fact that it was costing 40K to hire workers, I would have been HR'd in a fast minute.

    Look, I tried to be reasonable...

    by campionrules on Thu Oct 03, 2013 at 10:51:22 AM PDT

    •  ARRA was direct money for jobs (1+ / 0-)
      Recommended by:

        Bad comparison. ARRA was often government funded projects that had to hire people in order to get done. By comparison, the WEDC is handing out TAX BREAKS, which aren't necessarily related to job creation, and increase the profits of companies that may not need the help in the first place.

         And ARRA had pretty clear criteria for giving funds (in fact, the strictness of it was part of the reason it took a while for it to get going), while WEDC tax credit criteria is hidden from the public, and often seem related to campaign donations.

        Not close to the same when you compare "bang for the buck".

  •  Media Matters says this kind of $-per-job (0+ / 0-)

    math is "misleading".

    •  Misleading Math (0+ / 0-)

      I agree the math is misleading,  but then so is the math and accounting principles of the Walker Administration. In fact, the math used by Walker, is beyond misleading hugging right up and  close to a out-and-out lie?

  •  Good news (1+ / 0-)
    Recommended by:

    Walker's policies since day 1 of his administration have been net job losers, as the diarist pointed out by giving the example of rejected fed $$ for high-speed rail.  So we didn't build the rails, keep Talgo in WI, develop and staff new amenities at each stop, etc.  Surely the job-creation effect of that one policy is a negative number vastly greater than 22.

    Walker and his pals have made many other bad short- and long-term economic decisions that have cost jobs.  Beginning with the attack on public worker pay/benefits and continuing with short-sighted high-speed of extraction of our carefully husbanded resources and refusal to accept federal health care funds, significant immediate and downstream job losses are certain.  

    So we get the diarist's outrage at the big media blast over the creation of 22 jobs at a cost of a mere $400K taxpayer dollars (and the cost does not include the time spent by the vastly overpaid and underqualified staff in Walker's administration who worked so hard to pass our dollars to this corporation).

    This 'good news' is just a damned squirrel.  We taxpayers and voters deserve a balance sheet of the costs of lost job opportunities due to this ignorant and incompetent administration's policies as compared with the benefits of these and other much-touted new jobs.

  •  Tipped, recommended and republished (1+ / 0-)
    Recommended by:
    Mike Kahlow

    to Badger State Progressive.

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site