Robert Whitcomb's Digital Diary: Deal Delirium, Garden City Going Condo? and Trump Organization

Robert Whitcomb, Columnist

Robert Whitcomb's Digital Diary: Deal Delirium, Garden City Going Condo? and Trump Organization

Robert Whitcomb, Columnist
Deal Delirium; Garden City Going Condo? Trump Organization; ACA Adventures; Eerie History

"Autumn arrives in the early morning, but spring at the close of a winter day."


-  Elizabeth Bowen

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Economic development by deal continues apace in Rhode Island.  The latest example that we know of: State officials have been considering whether to award up to $4.1 million in state tax credits to Agoda Company, a Singapore-based online travel agency that’s part of Priceline, in return for opening an office in downtown Providence. The quid pro quo is said to be the creation of up to 200 jobs in the Ocean State.

 

Former Gov. Chafee said on GoLocal LIVE that Raimondo's strategy was a "candy store"
Of course, these tax credits must be made up by businesses and individuals who are not getting such goodies. As I have often noted  before, the argument is that the state’s promotional position gains by its bringing in high-profile companies, which will then presumably get others get excited about moving to the paradise on Earth that is Rhode Island. But measuring the economic benefits of subsidizing individual companies to move to a jurisdiction is, to say the least, an uncertain science. And corporate promises about the number of jobs to be created have the transience of snow in March in New England. That is not to say that all or most states  in varying degrees don’t do government by deal.

 

Perhaps this is technologically impossible, but it would be nice if some computer genius would figure out a way to compare the macro-economic benefits of only  changes that would affect most everyone in the state – such as better schools, better roads, lower or at least simpler taxes and clearer and fewer regulations -- with the effects of subsidizing individual companies to come. Implementing broad changes that gradually make a state more attractive to a wide range of businesses isn’t as sexy and doesn’t grab the headlines of snaring one company (and often for only a few years) but it would seem to make more sense.

 

And let’s not forget that Rhode Island  has splendid comparative advantages in location (one  of the best in the world), in such long-recognized sectors as design and boatbuilding and in  some famed educational institutions. These qualities are very saleable, especially if the broad-based improvements noted above were made. Too often, it seems that paying a company to come to the state is the first approach to economic development.

 

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Garden City
The owners of the very attractive and almost quaint Garden City shopping area in Cranston are quite right to consider diversifying the facility to include hotels, apartments and condos as well as retail in light of the current and future destruction of much traditional, bricks and mortar retailing by the likes of Amazon, etc. While some small and convenient neighborhood establishments selling food, clothing, hardware and even books will continue to thrive in some cities and towns, most of the bigger stores will not. Indeed, Providence Place should be looking into diversifying its mix.

 

But with relentless computerization,  automation, artificial intelligence and so on, will there be enough people with earned income to buy condos at the likes of Garden City? Will the destruction of so many well-paying jobs ultimately lead to government’s giving most folks a minimum annual income to be paid for by higher taxes on an increasingly rich sliver of people at the top of the income pile in order to discourage social disorder amongst the unemployed and underemployed masses? Obviously  it’s impossible to say for sure, but the socio-economics of the next decade will be exciting, to say the least.

 

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Many Americans, the great majority of whom remain surprisingly ignorant of Donald Trump’s business career, have been taken aback by the volatile, seat-of-the-pants way he acts as president. But that’s how he runs the Trump Organization (runs, not ran: whatever the bad ethics involved he is still  effectively running the Trump Organization, and indeed seeking to make lots of money for it in his new gig in the Oval Office). I’m also impressed by how much this man, who has so successfully avoided paying federal income taxes, is, with his jet-setting family, costing the taxpayers around $10 million a month in travel expenses – 10 times the rate of President Obama and his family. Mr. Trump is on track to be by far our most expensive president.

 

The president’s company was never publicly owned. Rather it is a secretive family enterprise centered on the  intensely narcissistic if sometimes paternalistic  Donald Trump, with power radiating out from him through family members and retainers. It recalls a Mafia operation (and the Trump Organization is not entirely unfamiliar with mobsters). Compared to a public company, the Trump Organization has had relatively few constraints on how it operates and has been able to operate with remarkable opaqueness.

 

Given Mr. Trump’s history, age and character, it seems very unlikely that he’ll change his operating style in any major way. Rather, he will tend to run the White House as he runs his company – very arbitrarily. He must tell himself: “Hey, it got me this far!’’ Let us hope that some of the grown-ups in the Cabinet can  moderate his worst impulses.

 

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A friend of mine (who voted for Donald Trump) and I were chatting the other day on the fastest way to address much of America’s health-insurance challenge. His idea was simply to lower the Medicare age to 50. That would mean that the taxpayers would insure a far larger percentage of Americans with chronic illness and that younger, healthier people, most of whom would presumably be covered by private insurance, would pay lower premiums than now because their insurance pool would lack all but a very  few chronically ill people. That, presumably, would get more young people (too many of whom think that they’re immortal) to get covered.

Hillary Clinton proposed letting people “buy into Medicare’’ at 50. It was a very popular idea but of course not enough to offset the strenuous efforts of Vladimir Putin to get his admirer Donald Trump elected.

President Donald Trump
I myself would prefer that everyone go into Medicare, and thus create one big insurance pool in which the very healthy would help pay for the very unhealthy, with frequent reminders that most of us one day will become very sick. That’s how successful insurance works – creating as wide a risk pool as possible. But given the power of the insurance companies,  Medicare for all, if it ever comes, seems very far off.

Meanwhile, even many in that fact-averse  swamp known as Trump Land are waking up to the fact that the Affordable Care Act ain’t that bad and that Republican leaders lied relentlessly when they said that had a plan to quickly repeal and replace it. They did not. As former House Speaker John Boehner (R.-Ohio) noted the other day:

 

“Most of the framework of the Affordable Care Act …that’s going to be there.’’

 

“[Congressional Republicans are] going to fix Obamacare – I shouldn’t call it repeal-and-replace, because it’s not going to happen.’’

 

 So much for seven years of lies.

 

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Belatedly, thousands of e-mails released by federal court order show the intimate relations of the new anti-EPA administrator of the EPA, Scott Pruitt, with the fossil-fuel industry and his very friendly tolerance of industrial polluters. As Oklahoma attorney general, Mr. Pruitt pretty much did anything that the oil and gas industry asked him to do, and damn the environment. He had/has particularly lose links with Devon Energy, a major oil and gas exploration and production company; indeed, the e-mails might lead some cynical types to think he was on its (off-the-books) payroll or expected to be some day.

 

The Trump administration’s love of fossil fuel is in the face of the fact that nonpolluting energy from wind, solar, geothermal, etc., is becoming more and more cost-effective. As the president throws more and more goodies into what will eventually be an outdated source -- fossil fuels -- America may fall far behind much of the rest of the world in developing nonpolluting energy.  Might a tidal surge inundating Mar-a-Lago get his attention?

 

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The Chinese were the number one source  of foreign tourists in Greater Boston last year, taking first place from the British. The Greater Boston Convention & Visitors Bureau estimated that 230,000 Chinese visited the area last year (compared to 224,000 Brits), drawn particularly by its history and its great educational institutions (and maybe by the opportunity to do a little industrial espionage in the region’s huge high-tech sector). The Chinese are especially eager to see MIT and Harvard, which many Chinese attend.

 

It’s too early to tell how much the Trump administration crackdown on immigrants might reduce the flow.  Meanwhile, The Boston Globe reported that a U.S.-China climate summit slated to be held in Boston this year has not been scheduled, raising suspicions that that’s because of the Trump administration’s opposition to doing anything about global warming.

 

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Maine Gov. Paul LePage, a very Tea Partyish politician, has asked President Trump to reverse President Obama’s designation of 87,500 acres given by businesswoman Roxanne Quimby to the National Park Service as the Katahdin Woods and Waters National Monument. Presidents have long had considerable power to protect  such federally owned scenic and otherwise important areas by designating them as National Monuments.

 

Mr. LePage,  an entertainingly grumpy Republican elected twice by a minority of voters because of Maine’s hoary tradition of having strong third-party candidates, wants the acreage to be returned to private ownership and opened for big recreational developments, resort hotels, snowmobilers and so on.

 

That could despoil a gorgeous area just to the east of  Baxter State Park, where rises spectacular Mt.  Katahdin, the highest mountain in the Pine Tree State at 5,267 feet. (I have climbed it and walked along the Knife Edge at the top. Bring your anti-vertigo pills if you try it!)

 

Let us hope that President Trump respects Ms. Quimby’s intentions and the precedent that presidents have the authority to set aside such land.

 

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The main New Haven line of the Metro North commuter line in Connecticut carried a record 40.5 million passengers in 2016.  If there’s frequent, reliable service, people will throng to the train. And land values tend to be much higher, and business better, along or near rail lines than along stretches with just highways. Fairfield County, Conn., is rich in part because it has good train service to and from New York City. Rhode Island would be richer if it had more trains.

 

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For a sometimes eerie exploration of  human history (particularly European), with its cycles of creativity, decay and destruction, and of the nature of  memory and memory loss, you could read the books of W.G. Sebald --- a curious mix of memoir, fiction and documentary history. The late Mr. Sebald, born in Germany in 1944 and later a writer and professor in England,  especially deals with World War II and the Holocaust, but usually by indirection, which makes his writing particularly unsettling.

 

They are a lot of facts (or apparent facts – “fake news?’’) and fuzzy black-and-white photographs as mysterious counterpoints to the  narrative. It evokes a dreamlike atmosphere – and, amidst droll humor – some waking nightmares. He’s a very idiosyncratic writer and one whose work will last. You might start with The Rings of Saturn.


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