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
In 2006, Democrat Sheldon Whitehouse defeated then-Republican U.S. Senator Lincoln Chafee on a campaign that largely sought to tie Chafee to the unpopular policies of the George W. Bush presidency. Twelve years on, some progressive Democrats disappointed with Whitehouse’s votes on civil liberties, Pentagon spending, and U.S. support for the Saudi war in Yemen, among other issues, are now looking to Chafee to challenge Whitehouse in this year’s Democratic primary—from the left. Chafee, who says he is 95 percent committed to running, expects to announce his final decision later this week. On Tuesday, he and I sat down in his Warwick office for an interview on topics including the Yemen war, the Foreign Intelligence Surveillance Act, single-payer health insurance, U.S. prisons, media reform, Whitehouse’s vote as a superdelegate for Hillary Clinton despite widespread support in Rhode Island for Bernie Sanders, war spending, and Russia.
We began by discussing the recent and minor controversy over comments Chafee made about Russian President Vladimir Putin in a Providence Journal article, titled, “Chafee praises Putin’s ‘brilliant’ critique of U.S. power.” Below is an edited and condensed version of our conversation. Continue reading Chafee Says He Will Challenge Whitehouse on Yemen, Civil Liberties, Superdelegates, and the Burrillville Power Plant
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
Between the state’s 2014 and 2017 fiscal years, Rhode Island allocated $18-million through its Medicaid-funded Rite Care and Rite Share medical assistance programs to employees working at companies that simultaneously received more than $114-million in state subsidies designed to spur job growth and workforce development.
CVS Health topped the list for total Rite Care and Rite Share expenses, as well as total tax incentives received. According to Rhode Island Unified Economic Development Reports, CVS employees and their dependents utilized $5.7-million in medical assistance during the four-year period in which the Woonsocket-based company also received $63-million in tax benefits.
Since 2008, CVS has received more state subsidies than any other business: $175-million of the nearly $350-million disclosed in the Division of Taxation’s annual reports on tax credits and incentives.
The second and third highest totals for Medicaid-funded benefits were at jewelry maker Tiffany & Company, and submarine builder Electric Boat, with employees and their dependents receiving $4.5-million and $3-million in government-funded health insurance benefits, respectively. Continue reading In Four Years, Taxpayers Spent $18-Million On Medicaid Assistance For Workers at Rhode Island Companies Receiving Millions in Economic Development Tax ‘Incentives’
In today’s world, tweets by members of Congress can tell you a lot: what they’re prioritizing, how they’re using their political capital, and the messages they want to get out to constituents, colleagues, and the media.
Because of all that, I decided recently to analyze Twitter feeds for the four members of Rhode Island’s Congressional Delegation using a social science research method called coding. Coding essentially means categorizing data to help you draw conclusions from the information you want to evaluate.
In the case of congressional tweets, I created topical areas—such as gun control, climate change, Russia, health care, immigration, and police reform—and tallied up the number of tweets that referenced each issue. Continue reading What Issues Take Priority and What Gets Shut Out on Sheldon Whitehouse’s Twitter Feed
[NOTE: A version of this opinion article was published in The Day newspaper, of New London, Conn.]
General Dynamics is not a poor company.
Far from it.
Like all of the country’s top defense contractors, its stock is trading at record highs. As of this writing, one share in the Falls Church, Virg.-based company costs more than $226, nearly $55 more than tech giant Apple.
General Dynamics’ current market capitalization, a measure of a company’s value, is $67.2-billion, up $14.6-billion from 2016. To put that into context, Maine’s entire gross domestic product was $59.3-billion in 2016.
On a recent earnings call, CEO Phebe N. Novakovic told analysts the company’s revenue last year exceeded $31.7-billion, outperforming the prior year by $412-million. Cash flow for the year was $3.45-billion.
And things should only get better. Continue reading General Dynamics Doesn’t Need Money From Connecticut or Maine
Top brass at defense contractor General Dynamics, owner of New England subsidiaries Bath Iron Works, and Electric Boat, say they are buoyed by the anticipated reduction in their company’s effective tax rate under the sweeping “Tax Cuts and Jobs Act” pushed into law last month by Republican members of Congress and Pres. Donald Trump.
On an earnings call earlier this week, Chief Financial Officer Jason W. Aiken told analysts the company, based in Falls Church, Virg., will likely see its 2017 full year rate of 28.6 percent drop to 19 percent in 2018.
According to a transcript of the call available online, Chief Executive Officer Phebe N. Novakovic characterized the passage of the tax overhaul as “a happy event.” Continue reading General Dynamics CEO Calls Republican Tax Law a ‘Happy Event’