Heinous Economic Inequality Rears Its Ugly Head In Connecticut
If you needed a prime example of what gross economic inequality looks like, look no further than what happened in the state of Connecticut today. The State Bond Commission voted 7-2 to approve $22 million in grants and loans to Bridgewater Associates, the world's largest hedge fund. The fund manages roughly $150 billion in investments and apparently couldn't cover the money to renovate and expand its headquarters. The state made this decision at the same time that it is cutting its budget and planning to lay off more than 2,500 workers from the state rolls.
One would assume there would be a roughly equal trade-off in jobs here. And that assumption would be dead wrong.
Under the terms of the deal, Bridgewater would receive a $17 million loan that would be forgiven if the company creates 750 new jobs, as well as retaining the 1,402 positions it currently has in the state.
This isn't to say the money could have saved all of the state jobs. But I'm pretty sure the people who are about to be laid off are none too pleased with this decision to trade 2,500+ current jobs for the potential for 750 and would like a clear explanation.
And, sadly, that clear explanation was given and it's only more depressing. The giveaway was approved to prevent essentially one guy from moving out of state.
Republicans have complained repeatedly that the state has suffered a tax blow because four Greenwich billionaires have moved to Florida. The billionaires pay millions in taxes, and Republicans say that blow has led to budget deficits in the current year.
(Governor Dannel) Malloy addressed the issue during the meeting by saying that (Bridgewater Associates Ray) Dalio – without mentioning his name – is "one of the wealthiest men in the country.''
"I would note that because we see what happens in places like New Jersey when some of the wealthiest people move out of the state,'' said Malloy, referring to recent testimony in Trenton about the loss of a single taxpayer who operated a large hedge fund.
The New Jersey instance they mention was the moving of one billionaire that will potentially lead to a $140 million hole in the state budget.
There is little doubt states are competing for companies and have to make decisions to try to grow jobs for their residents. But the glaring amount of income inequality should be very disturbing and should be examined more closely, so let’s do that a little here.
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