IBM deal is socialism dressed up as capitalism
While the cold in Buffalo feels like a Russian winter, Gov. Andrew Cuomo’s IBM announcement makes me think I am living in the Soviet Socialist State of New York.
The logic behind the IBM deal is absurd. Businesses will not locate in New York State because it has one of the highest tax rates in the country. However, with $55 million in taxpayer dollars, the state has promised to provide IBM with a location in Buffalo to do business. In exchange, IBM will create 500 jobs. This deal equates to $110,000 per job.
As IBM begins to create 500 jobs in Buffalo, one must note that it eliminated 697 jobs around Albany in 2013. Further job reductions are expected in 2014. Much of the revenue from IBM’s Buffalo outlet will come from creating software for government contracts – as long as funding for those contracts is available. In other words, the taxpayers of New York are subsidizing a multibillion-dollar corporation to create jobs, which are based on government contracts. Is this not socialism?
When government money runs out, what then? More subsides? There is no evidence that Cuomo’s plans will work in the long run. IBM may pack up and leave as it has done elsewhere. Soraa and Silevo may become Solyndras. What will Buffalo have left? Vacant buildings that it cannot fill? Is this an election ploy? Is this fair to other businesses in New York?
The problems in today’s economy stem from government interference in the economy, not the free market. The IBM deal is not how the free market works.
William L. Marcy