Subsidies Here, Subsidies There, Subsidies Everywhere

The Port of Portland plans to spend up to $4 million giving shipping companies incentives to send containers through Portland, rather than another West Coast port. The subsidies would pay shippers $20 per container that is shipped through Portland.

This is a classic zero-sum game: If Portland attracts any containers that would otherwise have gone to Seattle, Vancouver, or some other West Coast port, the other ports will merely match Portland’s subsidies to get the business back. The shipping companies earn a little extra profit, taxpayers lose,and consumers probably won’t save enough to measurably increase purchases of imported goods.


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To make matters worse, the port is offering the subsidies to compensate shippers for its own bad management, which has led to “chronic labor problems and low productivity on the docks.” A representative of the longshoreman’s union blamed productivity problems on poorly maintained and inoperable equipment. Port managers called these claims “scurrilous,” but did not specifically respond to the claims o equipment shortages.

Subsidies are a way of life for the port district. It gave $3.5 million to Delta to maintain air service to Japan and $750,000 to Asiana to operate air cargo service to Korea. These one-time subsidies are no guarantee of continued service; the port gave Lufthansa a few million to start service to Frankfort in 2003, but the airline pulled out of Portland in 2009.

In the long run, these subsidies harm both consumers and taxpayers. They apparently aren’t doing workers much good or they wouldn’t be at such odds with the port. Portland should privatize its docks and shut down the port district. Unfortunately, that’s not likely to happen so long as politicians can get their egos stroked and campaign coffers filled by the recipients of the subsidies.

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About The Antiplanner

The Antiplanner is a forester and economist with more than fifty years of experience critiquing government land-use and transportation plans.

7 Responses to Subsidies Here, Subsidies There, Subsidies Everywhere

  1. JOHN1000 says:

    The only people who truly get subsidized by these subsidies are: (1) politicians using OPM to buy some votes (2) a few politically connected companies who get the subsidies (usually at the expense of their non-connected competitors; (3) jobs for planner-types who are “experts” in managing the subsidies.

    Taxpayers, consumers, non-politically connected laborers do not get any subsidies – but they get stuck paying for them.

  2. Dan says:

    We recently had a gun manufacturer here play a slightly different version of this game.

    They went to the state and asked for subsidies, and stated they were shopping around for free money (TX, WY). Colo said tough rocks, and then this gun manufacturer publicly stated they can’t do business in a state that passes gun laws, they were leaving, waaaaah.

    WY taxpayers are now on the hook for well into 7 figures for bringing maybe 150 low-paying light manufacturing jobs there. Most of the old workers didn’t want to move a hundred miles north to keep these jobs.

    DS

  3. Fred_Z says:

    Good old fact free Dan.

    The company is Magpul.

    They are not a gun manufacturer. They make magazines for guns. Parts auxiliary to firearms, not firearms.

    They are not getting a subsidy, they are getting a tax break. Yes, of course I realize that all planners are socialists, and all socialists think the state is entitled to a 100% tax rate, and that a tax break is therefore a “subsidy”, but of course nearly everything planners and socialists, but I repeat myself, think is wrong.

    I am extremely happy to tell you that my son and I just bought some Magpul product over the Internet for delivery up here in Canada. It’s good stuff and the expression of solidarity was worth it.

  4. Dan says:

    FredZ, devastating there – there’s nothing fact-free. But thanks for trying! Also, too: I’m chastened that you used the highest-quality “soshelizt” insult. Owie! Takin’ it ta heart.

    High-quality aside, tax breaks are subsidies, even for conservative-approved products; the other taxpayers pick up the slack. But you knew that – it’s decried here all the time when transit gets subsidies. And the grants and loans for a building, I’ll admit I don’t know, but the fiscally conservative lawmakers in Wyo are leery of the taxpayers picking up another building if Magpul jumps ship again to another state. Ah, well, I’m sure that can be wished away too.

    DS

  5. Sandy Teal says:

    Now those Coloradans have more of that leeeezure time that Obama has been providing to so many citizens. We ain’t gonna have Coloradans having to work for pay.

  6. Frank says:

    “tax breaks are subsidies… the other taxpayers pick up the slack”

    You’re welcome for me taking up your slack. Enjoy your child subsidy. Especially when you’re not paying your share for your contribution to overpopulation. Especially when the childless pick up the slack for educating your child.

    Enjoy that home owner interest deduction subsidy, too.

    Or…

    Instead of casing aspersions on those who get tax breaks, we realize this is the system set up by taxing production instead of consumption, and we see this is the game people—and businesses—play to keep as much of their production as possible.

  7. Dan says:

    An ideologically pure maker, an iconic company, shopped around for the best government handout it could get, and left loyal, patriotic employees in the lurch just to grab some sweet taxpayer money. Just like they all do. Books have been written about the prevalence of the makers’ grab for gubmint money.

    I can see how that would give the pure a sadz and they would lash out at the guy pointing it out. Predictable, even.

    DS

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