Gov. Beverly Perdue says North Carolina has no choice but to keep offering incentives packages to attract out-of-state companies even after the closing of the Dell computer plant.
Politicians are what they are because they choose to be in the limelight. They want to be at the center of "what's happening". They justify their existence by coming up with one reason after another for bigger government. Sooner or later, the public is stuck with the bill. Medicare, Social Security, the US Postal Service and virtually every other governmental program is broke or deeply in debt, but NC "has no choice"?
The good news is that the old concept of public service is not dead. There are legislators who believe in the necessity of limited government. Hopefully, the developing backlash will continue to gather momentum. Citizens must forever remain vigilant about who they choose to hold the public purse.
When Dell was started, it sold small computers. Today, it continues to try to sell what are now large computers. The size of computers kept getting smaller but Dell has struggled to make the change to "smartphones". NC gave Dell enough money for it to try to force more desktops onto the market. The market cannot be forced without the continued waste of resources (yes, even the subsidized post office is headed for a fall and ethanol plants are dropping like dead flies). Dell should have taken a lesson from Warren Buffet and treated the desk top business as a "Bershire Hathaway", a cash cow to be used to fund other initiatives.
It is likely that Perdue will be able to collect the money owed by Dell, but a detailed accounting, including the opportunity costs squandered, will show that government boondoggles benefit politicians but not the people!
"Perdue says Dell will pay back every "red cent""
- Perdue says Dell will pay back every "red cent" (view on Google Sidewiki)