Tuesday, March 02, 2010

When Government Picks Winners and Losers

Doyle has been touting his spending of taxpayer dollars on buying trains with a no-bid contract and luring a Spanish company to Milwaukee.  It looks like it will result in some good things:

The passenger train factory to be developed at the former Tower Automotive plant on Milwaukee’s north side will create around 125 jobs, Gov. Jim Doyle and other officials said Tuesday morning.

Spanish train manufacturer Talgo will use a refurbished building at the former Tower site to assemble passenger trains that will be used in Wisconsin, Oregon and possibly other states. Around 60 positions will be needed to build the trains, with another 65 jobs tied to maintenance work.

Talgo had initially been expected to have around 80 positions at its Wisconsin plant. Doyle said the factory at the Tower site will also indirectly create an estimated 450 jobs at companies located throughout the Midwest that will provide supplies, equipment and services to Talgo.

That initial number of 80 jobs was based on Wisconsin’s $47.6 million controversial no-bid deal with Talgo to build two 14-car trains for use on Amtrak’s Milwaukee-to-Chicago Hiawatha line. That contract includes an option to buy two more trains for a planned extension of that route from Milwaukee to Madison.

Of course, Milwaukee already has a company that builds trains: Super Steel.  But Doyle didn’t want to favor a local company because that’s not as cool.  Well, when the government picks winners, it also picks losers.

Milwaukee manufacturer Super Steel Products Corp. filed for receivership Tuesday, listing $44.4 million in liabilities and assets of “significantly less” than $16 million.

[...]

In this case, the receivership filing comes just one day after Super Steel was told it wouldn’t win a contract to build train cars for Spanish company Talgo. Super Steel had been pursuing the work.

(10) Comments
Posted by Owen at 1710 hrs
Economy + Politics + Politics - Wisconsin

  1. This Talgo train thing is a joke.  A fraud. 

    I watched news 4 tonight and it was the lead story.  They neglected to omit that the 60 jobs for maintenance will be paid for by the State subsidies needed to run these trains.  So we have a billion dollars blown for…....120 jobs.

    Later in the newscast, they surveyed Tosa residents who were angry at the new Dave N’ Busters restaurant that just opened.  Some people feel it will bring the wrong type of crowd. 

    So, TMJ4 and Doyle cheerlead 120 jobs that cost $1 billion. And paints the new restaurant in a less than favorable light. 

    And at the end of the Dave N’ Buster’s story, the reporter said the new restaurant has created….....200 NEW JOBS!

    Uggh.

    Posted by .(JavaScript must be enabled to view this email address) on March 02, 2010 at 2108 hrs


  2. Talgo brings how many jobs?  SuperSteel loses how many jobs?  So net is?  Anybody?  Bueller?

    What a freakin’ mess.

    Posted by Steve on March 02, 2010 at 2209 hrs


  3. RTFA!

    “the company remains in business, “substantially all jobs” remain in place”

    SuperSteel’s debt problems didn’t happen overnight. I’m guessing Talgo took one look at their financials and said “no thanks”.  LIke the article says, the receivership is a strategic business move, and the chairman will likely end up with the company and position it to get some of the related Talgo work.

    Christ, people. Does anyone here actually read and using their f’ing brain?

    Posted by .(JavaScript must be enabled to view this email address) on March 02, 2010 at 2232 hrs


  4. Any guesses on which company president wrote out a check to Doyle’s campaign fund?

    Should only take one…

    Posted by .(JavaScript must be enabled to view this email address) on March 02, 2010 at 2235 hrs


  5. Every Wisconsin GOP or Tea Party politician needs to be running on the platform of “kill the monorail”

    I still think this is a huge winning issue.  Force your opponents to defend the monorail.  They can’t do it.

    Posted by .(JavaScript must be enabled to view this email address) on March 02, 2010 at 2323 hrs


  6. I hope Talgo realizes this is a one-year gig. After the new conservative legislature is seated next January the $800 million boondoggle will be cancelled and the Spaniards sent back home.

    This is like having an ex-wife that still has your credit card!

    Posted by .(JavaScript must be enabled to view this email address) on March 03, 2010 at 0826 hrs


  7. yes, the world is a much better place when we only drive, individually, from place to place.

    and, of course, there’s no role for government to provide any public service.

    you all are right. I’m convinced. where do I pick up my tea bag.

    Posted by .(JavaScript must be enabled to view this email address) on March 03, 2010 at 0917 hrs


  8. you all are right. I’m convinced. where do I pick up my tea bag.

    Posted by George on March 03, 2010 at 0917 hrs

    You can start here:

    http://www.teapartyexpress.org

    Posted by .(JavaScript must be enabled to view this email address) on March 03, 2010 at 1018 hrs


  9. So, we have the Governor and Mayor in cohoots to deny business to an existing Milwaukee company in order to allow a Spanish company to set up temporary jobs assembling trains. Yeah, that sounds like a great deal… if you are Spanish.

    Then, when we run out of grant money from Obama’s stash, we will be forced to institute new taxes to support a new underused train that will be subsidizing every passenger the way the Hiawatha does. Nice job Democrats… another sound economic plan from the folks that gave us a 3 billion dollar state deficit.

    Posted by .(JavaScript must be enabled to view this email address) on March 03, 2010 at 1340 hrs


  10. yes, the world is a much better place when we only drive, individually, from place to place.

    and, of course, there’s no role for government to provide any public service.

    you all are right. I’m convinced. where do I pick up my tea bag.

    Wow, George… Not sure you could even TRY to be more irrelevant. You really need to turn off Olberman.

    1.) The world is a better place when people are independently mobile. It provides people with a means to seek out better employment, it allows people to move from bad neighborhoods to good ones, something you apparently prefer to prevent.

    2.) The government really doesn’t need to provide any services, because if the services were truly valuable, or viable they could be provided by the private sector AT A PROFIT.

    3.) I don’t need to convince you George, you are apparently not capable of any level of thought beyond the lefty statist meme.

    Posted by .(JavaScript must be enabled to view this email address) on March 03, 2010 at 1625 hrs


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