“Privatize the profits and socialize the losses.” Hasn’t that been the M.O. of big corporate interest for the last 35 years? Of course it has been, yet you $30,000 dollar conservative Republicans don’t even see this because of the lies right wing think tanks have pumped into your head.
Just coming out now is another case where politicians are shifting money into the hands of a billionaire while Rome burns. In a recent report by Bloomberg and Business Insider, Los Angeles taxpayers have floated $350 million dollars worth of bonds in order to help finance another stadium for the city. Billionaire Philip Anschutz’s is trying to build a football stadium and convention-center addition in Los Angeles and offers the city a financial guarantee that is not even close to what he gave with Staples Center over a decade ago.
By the Anschutz subsidiary behind the project not providing a letter of credit or additional guarantee that means if the stadium and convention center is built, but the proceeds fall short of what’s needed to cover the bonds, the city of Los Angeles and the taxpayers are on the hook.
“With no bank, corporate or municipal insurance, you are possibly looking at the city having to make the payments,” Jeffrey Appelbaum, an attorney who specializes in stadium finance at Thompson Hine LLP in Cleveland, said in an interview.
How great is it to be a billionaire and have millions of taxpayers finance your business?
So essentially if the company goes bankrupt, the ones that are forced to pay the note will be the taxpayers of L.A. because the private investors who bought the municipal bonds need to be made whole.
This is obviously not the only case, former Red Sox pitcher,Curt Schilling is pulling this same stunt in Rhode Island and of course the same scenario could happen. Curt Schilling owns 38 studios and the state of Rhode Island is floating a $75 million dollar bond for them. 38 Studios will receive $13 million immediately, with the rest coming to the studio during the next 15 months provided that it reaches certain employment milestones.
This isn’t the free market, this is direct government intervention in the market that only helps ONE corporation and in some cases ONE industry. Tens of thousands of community businesses and business owners take out loans in the company’s name or in the case of sole proprietors their personal name in order to start their business, what makes these billionaires any different.
In a time of massive lay-offs involving teachers, who add compound value to the economy. We have municipalities taking risk and taking out loans for one corporation. Where are our priorities?