Anyone who has ever read coverage in The Providence Journal of a keel laying at General Dynamics knows there’s a better chance of being struck by lightning while riding a unicorn than seeing Gov. Gina Raimondo and our congressional delegation pass up a photo opportunity at the Quonset submarine shipyard.
Raimondo, along with fellows Democrats Sen. Sheldon Whitehouse, Sen. Jack Reed, Rep. Jim Langevin, and Rep. David Cicilline, have trumpeted GD’s subsidiary Electric Boat as a valued corporate “partner,” a “jobs creator,” and a reliable ticket to the “middle class” for “hardworking Rhode Islanders.”
Their PR messaging, of course, ignores the company’s role in producing advanced weaponry, submarines included, that intimidates nations and destabilizes the globe, while simultaneously pushing said countries to pursue nuclear weapons programs in hopes of maintaining some sense of security against the U.S. war machine—never mind General Dynamics’ status as a corporate welfare giant that’s secured, through political strong-arming, nearly $480-million in state subsidies nationwide on top of the billions it gobbles up in federal taxpayer dollars every year. Meanwhile, much of that money—nearly $11-billion since 2013—has gone to dubious share repurchasing that inflates executive compensation at the expense of workers.
But the extent to which Rhode Island politicians are willing to turn their heads to General Dynamics’ rapaciousness and the moral bankruptcy of the company’s leadership took on a new dimension this week, when it was widely publicized that GD holds a lucrative contract to track detained immigrant children separated from their parents under Donald Trump’s deplorable immigration policy. Continue reading The Hypocrisy of Blasting Trump While Cheerleading For General Dynamics
Paul Roselli has worn many hats in his life: documentary filmmaker, environmental activist, land steward; he’s even worked stints in corporate America and university relations. Now he wants to add the title Governor of Rhode Island to that list. Prior to announcing his candidacy last September, Roselli was best known as a leading opponent of the fracked gas power plant in Burrillville, where Roselli runs a local land trust. The Democratic challenger to Gov. Gina Raimondo says his decision to enter the race was initially inspired by his disappointment in Raimondo’s “arrogant” and disingenuous response to the concerns of Burrillville activists opposed to the power plant and her acceptance of campaign contributions connected to Invenergy, the Chicago-based company behind the project. But, Roselli says, his message has since broadened, and his goal is to fix Rhode Island’s transportation, healthcare, economic and environmental challenges through a “holistic” approach no longer stuck in the 1940s.
When Roselli and I sat down recently to discuss his campaign, we began by talking about Gov. Raimondo’s focus on building the state’s military-based economy, including her awarding of millions of dollars in subsidies to nuclear-armed submarine maker Electric Boat, a division of General Dynamics, a Fortune 100 company and one of the nation’s largest Pentagon contractors. Below is an edited and condensed version of our conversation. Continue reading Paul Roselli Wants to Fix Transportation, Healthcare, and the Environment—and Get Rhode Island’s Economy Out of a ‘1940s Mode’
When writing the headline for this piece, I initially went with: “Corporate Accountability Is an Afterthought in Rhode Island.”
But I quickly realized that would be a little misleading to readers, as the word “afterthought” implies a person, or group of people, actually starts thinking of something at some point. And I don’t get the impression our governor and her administration ever became too concerned about holding accountable the corporations that have leaned on taxpayers for years.
Take for instance the case of Navy contractor General Dynamics-Electric Boat and its use of jobs training funding in Rhode Island. Continue reading Corporate Accountability Is Not a Priority in Rhode Island
If you’re a Connecticut resident who was caught off guard last week by Democratic Gov. Dannel Malloy’s announcement of an $83-million subsidy package to U.S. Navy contractor General Dynamics-Electric Boat, don’t worry—you weren’t alone.
That’s because, while Malloy’s self-described “historic long-term partnership” with Electric Boat had been in the works for months, the giveaway to cover infrastructure expansion and workforce development costs at Electric Boat’s Groton shipyard was virtually impossible for the public to follow and weigh in on in any meaningful way.
From what the public could see, it all started in January when Sen. Cathy Osten (D-Sprague) announced her plan to introduce a bill offering $100-million to Electric Boat for facility expansion, and another $50-million for employee training. A placeholder for the “Act Concerning Funding For Submarine Jobs and Opportunities” was posted online with zero details and then never updated. Continue reading General Dynamics and the Undermining of Democracy in Rhode Island and Connecticut
When I heard Matt Brown was considering a run for Rhode Island governor, the first thing that struck me was how he’s spent the last decade since leaving office as secretary of state: founding and then running Global Zero, an organization dedicated to the elimination of nuclear weapons worldwide by 2030. That work was certainly in direct contrast to a key focus of the state’s Congressional Delegation, which has thrown its political capital into development of a new class of nuclear-armed, ballistic missile submarines to be built at local Navy contractor General Dynamics-Electric Boat at the cost of up to $104-billion to U.S. taxpayers. Gov. Gina Raimondo, Brown’s opponent in this year’s Democratic primary, has also latched onto EB’s good fortune, dedicating more than $4-million in government funds to train the company’s workforce, labeling it one of the top jobs opportunities for the state.
I spoke to Brown by phone earlier this week, touching on his thoughts about nuclear weapons and Rhode Island’s role in producing them. The conversation evolved into a discussion on corporate power and the role of government in recent decades in enabling the most inequitable economic climate in America since the Gilded Age. As Brown sees it, his campaign will be about educating the public on these challenges with truthful and robust debate. The former founder of Rhode Island’s City Year school improvement program, Brown says his view of economic development distinguishes him from Raimondo, a former venture capitalist who has largely built her jobs growth plan around corporate subsidies and tax incentives—or what Brown characterizes as “giveaways.”
Below is an edited and condensed version of our conversation. Continue reading Matt Brown Says General Dynamics is ‘Strong-Arming Rhode Island Taxpayers,’ and the State Needs to Move Beyond Its Military Economy
The author Joan Didion famously wrote, “We tell ourselves stories in order to live.”
In Rhode Island and Connecticut, we tell ourselves myths about Electric Boat in order to justify building war machines.
There are the obvious myths: that a fleet of nuclear-armed submarines costing upwards of $104-billion will be a force for peace in the world; that executives at parent company General Dynamics gobbling up millions of dollars in compensation each year on the taxpayer dime are “patriotic”; and that some other community will build these weapons systems anyway if Southern New England doesn’t—so why shouldn’t we?
The fourth myth, which might be the most rich, is that the top brass at General Dynamics-Electric Boat actually care about our community, that they’re people committed to providing us with “good middle class jobs,” the kind of “blue collar” work that still provides an income you can raise a family on. Continue reading The Myth of General Dynamics-Electric Boat and Its ‘Middle Class Jobs’
[NOTE: An audio version of this story aired on Rhode Island Public Radio.]
In 2013, Rhode Island lawmakers directed the state’s revenue department to analyze tax incentives created to spur economic development. The idea was to assess whether those incentives were actually working.
Linda Katz, co-founder and policy director of the non-profit Economic Progress Institute, was one of the people who supported the law.
“It’s the bang for the buck,” said Katz, whose organization advocates for policies that benefit lower-income Rhode Islanders. “We want to know if we’re giving away money in order to either attract a company here, keep a company here, try to ignite some activity, that we know that, at the end of getting that tax break, we’re actually better off than we were before the company got here.”
But there’s one key problem: the state has yet to produce a single evaluation required under the law. The first report was due last June. Continue reading Despite State Law, Rhode Island Has Never Evaluated Its Business Tax Incentives
[NOTE: This story is part of an ongoing reporting project being developed for Rhode Island Public Radio.]
Rhode Island appeared to be headed in the right direction in 2013 when it signed into law the Economic Development Tax Incentives Evaluation Act, officially requiring regular analysis of its many “business development” tax breaks to corporations.
But, more than four years on from its enactment, the Evaluation Act has yet to amount to much more than a symbolic victory for the advocates for government and corporate accountability who helped push it through.
Continue reading Rhode Island is Still Not Complying With Its Own Law on Evaluating Tax Incentives