Monday, September 19, 2011

Corporate Welfare?

The new Electrolux plant in Memphis may be more corporate welfare than job creation:

The Tennessee Valley Authority has offered a total of $6.5 million in grants, loans, and incentives-paid for by the taxpayers of this State and the nation-to Electrolux. The City of Memphis and Shelby County have taken out enough debt to be paying on the project for the next 25 years, and the taxpayers of Shelby County and the State of Tennessee are footing the bill for the construction of the factory. However, as soon as the first product produced at the plant completes its journey through the assembly line, Electrolux gets to take over ownership of the facility, even though the company didn't pay for its construction. There is also nothing in the contract-if the Commercial Appeal's investigation bears any credibility-that would mandate that Electrolux remain in Memphis or in Tennessee for a specified period of time.

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