Walker’s WEDC has been passing out cash to campaign contributors without regard to job creation. In fact, the spokesperson for Walker’s Wisconsin’s Economic Development Council Thomas Thieding, openly stated “We don’t create the jobs. We help the job creators”.
Folks ideally government shouldn’t give money to business owners unless it is a loan needed for expansion. That is, an expansion at the same time as the loan proceeds are disbursed to the business owner else you’re just concentrating wealth without any clear business reason (much less jobs) associated with the giving of the money. And yea, it should have been a loan - that is to be repaid – complete with legitimate loan documents detailing its repayment and how the Taxpayers can go about getting their money back should the borrower fail to repay the loan.
WEDC should have demanded receipts for say, newly constructed facilities, purchases of new equipment, or additional raw material at the time of the loan. And WEDC should have reimbursed these sellers of stuff purchased by the WEDC borrower directly…off the invoice they sent to the borrower (a borrower who is responding to an increase in the aggregate demand for their goods and services proven in their loan application). Otherwise you’re just helping the recipient of WEDC funds buy a boat, maybe a Mercedes or a drunken gambling binger in Vegas!
If Walker’s WEDC was giving the money to business in anticipation of future business purposes, then you, say, put the money aside in an escrow account so the borrower doesn’t use it to buy a boat, maybe a Mercedes, or a drunken gambling binger in Vegas and document under what circumstances the money can be withdrawn by joint WEDC and Borrower agreement. Alternatively, Walker could have award, say, a line of credit/letter of intent/prequalification letter good until a future date for the specified business purpose that created jobs.
BUT, you just don't give out money will-nilly without any legitimate documentation or purpose! That's for Obama's Federal Government to do with Wall Street.
And a word to the Campaign Contributors who got their fun money via a tax credit – tax credits can be recaptured in the future (at the same time as the indictments) with interest, penalties, and fines .
Special Thanks to the Isthmus Weekly news magazine page 8, July 19, 2013 edition, Vol. 38, No. 29, Madison, WI