The Failure of Business Progressivism and the Greensboro Partnership

There was a fascinating discussion that took place at the last Greensboro City Council meeting.  The news had just been published that Guilford County had lost 11,000 jobs from 2005-2010; and that median income had dropped 21% in the county over the last decade.

The discussion was about a reduction in funding for the Greensboro Partnership.  John Hammer reports:

(Councilwoman Nancy) Vaughan...asked that the $14,000 cut from the Greensboro Partnership budget be restored. All nonprofits were cut by 10 percent.

Perkins noted that the Guilford County Board of Commissioners fully funded the Partnership but didn't note that the commissioners raised taxes by 4.5 cents.

Matheny said, "we have a bigger problem than $14,000." Matheny talked about the recent job loss report and said, "We are the worst in the State of North Carolina on jobs."

He said that people had to stop pointing fingers and get together and figure it out.

Knight said, "I couldn't agree more. There has to be an all out assault on this problem."

Thompson said that nobody was talking about not funding the Partnership, but the funding for the Partnership was going to be reduced like the funding for all other nonprofits.

The effort to restore full funding to the Partnership failed 4 to 5, with Perkins, Bellamy-Small, Kee and Vaughan voting in favor.

This was very interesting because Councilman Zack Matheny pointedly argued that the approach taken by the Greensboro Partnership to economic development was not working; and the recently released numbers regarding job losses and declining income were clear evidence of that fact.  Matheny has previously been a big booster of the Partnership.  But this time, he left the heavy lifting to Nancy Vaughan to advocate for the Melderec crowd.

There is a larger point, however. 

Both our local government and our state government have previously been governed, to a great extent, according to a philosophy referred to as "business progressivism".  Among the exemplars we have seen espousing this philosophy are, at the state level, Kay Hagan, Jim Hunt, Mike Easley, Marc Basnight, Jim Black, Don Vaughan (and because she tends to tag along, Maggie Jeffus).  At the local level, we have seen folks like Keith Holliday, Yvonne Johnson, Jim Melvin, Robbie Perkins and Nancy Vaughan.  I suppose we could also add folks like Matheny, Kirk Perkins and Kay Cashion to this category also.

Carolina Journal recently had a very interesting critique of business progressivism written by Rick Henderson:

As North Carolina has remained fixated on a nearly century-old strategy for economic development, our neighbors and competitors have chosen policies more in tune with today’s dynamic economy. They’ve done a better job acknowledging that taxes are not delivered by a fat man in a red suit piloting a sleigh, but instead come from the proceeds of private economic activity. In other words, profits are generated by hard work, commerce, and entrepreneurship.

Other states in the region have invested in transportation networks, public research universities, and cultural resources. But they also have kept taxes lower and regulations less invasive. They’ve maintained and expanded a commercial base by providing an environment that welcomes private enterprise.

Globalism, the financial crisis and the great recession have exposed the utter failure of business progressivism.  We were able to remain competitive under this philosophy twenty years ago, but no longer.  The data indicate we are now falling way behind.

The Greensboro Partnership has been a frank manifestation of business progressivism.  Its intense advocacy for robust public spending and borrowing (and implicitly, for tax increases), even for unnecessary projects, is an outrage.  But that is the deal we bought when Jim Melvin's Action Greensboro was merged with the local chamber of commerce and the Greensboro Economic Development Alliance several years ago.  As long as that merger holds, and the old guard remains in control, we are going to have problems.

This is the same crowd that maintains an alliance with the Simkins PAC; and that even gave the PAC an illegal $5,000 contribution to get a huge bond issue passed at the polls.

As long as self-defeating policies continue to be championed by those in positions of power, both at the local level and at the state level, we are going to have problems.

Comments

[Ken Hill]

Not often recognized is the cumulative effect of zoning and homeowner association regulations that inhibit or prohibit certain uses of property and buildings. Building may never happen in many cases and businesses may never start. I realize that not everyone reading this blog is basically a libertarian and many really like the restrictions (on other people!) of these things. But they do inhibit economic activity. And of the few people who have told me that zoning promotes and helps business, not one has ever been able to explain how.
The EPA is a whole 'nother mess dampening business activity.

[Kathy Hartsell]

Joe,

In the Special Council Meeting on Monday, Trudy Wade put forth the Hire One Atlanta (http://www.hireoneatlanta.org/), where each business hires one employee over the next year and with public/private partnership the local media agrees to spotlight that company for one day in their paper.

She asked the manager to see about the possibility of implementing a similar program here. She also challenged the N&R to put aside their political agenda to help with this initiative and become part of the solution.

[Bubba]

"As long as self-defeating policies continue to be championed by those in positions of power, both at the local level and at the state level, we are going to have problems."

Oh no, Joe.....that's all wrong!

As long as we have Knight, Thompson, Wade, and Rrakestraw on City Council, supported by us, EVERYONE knows that WE'RE the problem. We're all just a bunch of racist, homophobic, librarian haters, and general troglodytes against Business As Usual!

At least that's what the "experts" over at Cone's tell us.

Nancy Vaughan has been a major disappointment, and there's little hope she will be any better in the future.Let's see if she actively supports the execrable Perkins in his mayoral run.

[Kathy Hartsell]

Try this link:
http://www.hireoneatlanta.org/

[Joe Guarino]

Ken, there is no question that zoning restrictions and increasing costs to developers can impede local economies and increase the cost of housing. And I agree that unnecessary environmental regulation can also have adverse effects on economic activity.

Kathy, thanks for the tip and the link. I wonder what political agenda Wade felt the News and Record has.:)

Bubba, you said:

"Nancy Vaughan has been a major disappointment, and there's little hope she will be any better in the future.Let's see if she actively supports the execrable Perkins in his mayoral run."

The fact that she has been cheered on at Cone's is a telltale indicator of where her sympathies lie for the most part. She votes with Perkins a considerable amount of the time, so I would not be surprised if she were to ally herself with him during the election season. Or she may try to go incognito, and perhaps then more people will be fooled as to who she really is.

[Stephen]

So all of these companies, many of which are currently losing money, in the worst economy for some time, are supposed to hire a person, just for the common good. Good grief.

[Tony Wilkins]

From your link Kathy: "Your company is one of the 150,000 companies in Atlanta. If we each hire one additional person, we’ll put 150,000 Atlantans back to work. Have you done your part?"

Interesting concept from Trudy. With just a small percentage of participation in Greensboro this could make a real difference.

Watch for the "slight tilt to the left" N&R to refrain because of the origination of the idea.

[Kathy Hartsell]

Here you go.
Stephen, obviously people have to have a job in order to have money to spend - to stimulate the economy. Hypothetically, if there were 20,000 businesses and each company would hire one person, we could put 20,000 people back to work and stimulate the economy. It sure beats the federal government taking our money and using it for stimulus programs. Obviously we the people have to take control because the government can't do it for us. Everyone knows small business is the backbone of the economy.

Check out the link above. It works.

In just 3 months more than 1,000 companies in Atlanta joined the campaign and now almost 9,000 people are back at work.
http://www.myfoxatlanta.com/dpp/money_watch/%27Hire-One%27-Puts-Atlantans-Back-to-Work-20110627-am-sd

[Stephen]

I understand the concept. But then why don't these businesses hire 2 people each? Wouldn't that double the effect? Why don't they just hire the number of people that it takes for everyone to have a job?