Hasbro has apparently sent a shiver up the spines of the City of Pawtucket and state leaders. Its Board of Directors is contemplating a move out of Pawtucket and, perhaps, out of the state. The …
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Hasbro has apparently sent a shiver up the spines of the City of Pawtucket and state leaders. Its Board of Directors is contemplating a move out of Pawtucket and, perhaps, out of the state. The Democratic poohbahs are wringing their respective hands and pontificating about their “commitment” to keep the international headquarters of this toy giant right here in Little Rhody. Absent again, is any insight as to why a global corporation would want to leave in the first place. Here are just a few major miscues by leaders:
Educational system
Calling it a “system” is kind. Actually, it is a hodgepodge. To the degree ANY education is working is due to the teachers who buck the agenda of the NEA and AFT teachers unions where teaching less for more money is the mantra. Corporate leaders do not countenance a sub-par education for their children or that of their employees. The recent dismal assessment of skills released shows that Rhode Island is outranked by its neighbor, Massachusetts, and the sorry set of excuses emanating from the Department of Education and state leaders clearly show the lack of insight. If these folks cannot admit what is wrong they hardly have the prescription to correct the problem. Hasbro doesn’t cotton to a school system that harms rather than helps children, the company’s main market.
State spending
The Democrats and the governor are swelling state payrolls, apparently as a foolproof way to claim better employment numbers. In this day and age where technology can do the work of many, Rhode Island is parceling out high-paying jobs to families and friends. Such incredible waste of taxpayers’ money cannot go unnoticed by a high tax-paying company.
Tax laws
While some movement has occurred on such areas like the estate tax, the exemption is still paltry. Executives are moving out to kinder climates and transferring their philanthropy with their exodus.
Government picking winners
Like most big businesses Hasbro will probably be open to a deal it can't refuse as the Commerce Commission gives away the proverbial store to retain it. There is something, nonetheless, profoundly troubling to corporations who see the largesse of government being dependent on governmental clout to secure it. A corporation may be in favor today and in the dog house tomorrow so predictability is a scarce resource. Rhode Island’s penchant for picking “winners and losers” in the "tax giveaway sweepstakes" is basically unsettling, particularly if it is rooted in campaign contributions.
What the rest of the taxpayers are still left with is the invoice for retaining businesses here while their children get a sub-level of education. This is hardly a winning formula for retention of a middle and higher income class. It isn’t even a sop for those who are dependent upon state aid since they, too, realize that their children are behind the proverbial eight ball and doomed to follow in the low income path of their parents.
With the start of a new year is there any hope? So far, it appears that state politicians are still rooted in the failed protocols of the past. Lacking true courage to challenge the status quo they will huff and puff about the vagaries of losing a stellar company like Hasbro and shift the responsibility to the shoulders of the company if it leaves.
Arlene Violet is an attorney and former Rhode Island Attorney General.