The Guv’s embarrassing jobs creation press release

jobseconomyDon’t get us wrong; it’s almost always great whenever a new employer is creating jobs in North Carolina. And the phenomenon of politicians claiming credit for job creation is nothing new; everyone likes good news and wants to be around when it’s delivered.

That said, today’s press release from the office of Governor Pat McCrory announcing the expansion of a plastics manufacturer in Henderson County borders on the ridiculous. This is from the release:

“Governor Pat McCrory and N.C. Commerce Secretary Sharon Decker announced today that Elkamet Inc. is expanding its North Carolina manufacturing operations in Henderson County.  The company plans to create 20 new jobs and invest more than $2.5 million over the next three years in East Flat Rock….

The project was made possible in part by a performance-based grant from the One North Carolina Fund of up to $24,000. The One NC Fund provides financial assistance through local governments to attract business projects that will stimulate economic activity and create new jobs in the state. Companies receive no money up front and must meet job creation and investment performance standards to qualify for grant funds.  These grants also require and are contingent upon local matches. – See more at: http://www.governor.state.nc.us/newsroom/press-releases/20140331/plastics-manufacturer-expand-henderson-county#sthash.i1S6RWQw.dpuf

The project was made possible in part by a performance-based grant from the One North Carolina Fund of up to $24,000. The One NC Fund provides financial assistance through local governments to attract business projects that will stimulate economic activity and create new jobs in the state. Companies receive no money up front and must meet job creation and investment performance standards to qualify for grant funds.  These grants also require and are contingent upon local matches.”

No, that’s not a misprint. The release is touting the creation of 20 jobs over three years at the cost of a goodly chunk of state and local change. That’s about one job every two months.

Now, again, this is is certainly fine news – especially given that it involves manufacturing. And the pay at the jobs is not terrible — about $33,000 per year or about $16 per hour. But is that really deserving of a press release or, perhaps more to the point, a government subsidy?

What’s next — a press release every time Starbucks opens a new store? Based on today’s precedent, that may not be such an outrageous question. As best as can be determined from a quick web search, the average outlet of the coffee giant employs around 25 employees — all of whom get to work a lot faster than three years.

6 Comments

  1. Alex

    March 31, 2014 at 4:50 pm

    The same could be said for every little feel-good Obamacare story on this site acknowledging that someone has obtained health coverage, although it’s usually at the expense of someone else losing their coverage, losing their doctor, or paying a higher premium. Good news is always in the eye of the beholder.

  2. ML

    March 31, 2014 at 5:31 pm

    You’ll have elaborate or your point makes no sense, people gaining insurance through the ACA does not cause harm to another individual. Not everything is or must be a zero sum game. Cherry picking statistics to push your narrative in the face of overwhelming evidence to the contrary is not the same. The statistics are based on facts, the stories regarding the ACA are personal and shows how the law is helping people to counter the GOP media machine’s anti-ACA propaganda.

    Had mccrory spoken about one mans struggle to find a job and bc of Mccrory’s policies the man had found a job. But not only has he has tried to push the Carolina comeback narrative while many still suffer but he has likely made the problem worse by trying to whitewash the job loss in nc. On the other hand the stories about the positives of the ACA highlights the achievements the law has made on individuals.

  3. WDB

    March 31, 2014 at 11:04 pm

    Is it possible that the press release should have been worded this way? “The company plans to create 20 new jobs and over the next three years, invest more than $2.5 million in East Flat Rock….” It may be just a poorly worded sentence. What company could or would add 20 new jobs at the rate of just one employee every two months for three years? Yes, they probably wouldn’t add 20 jobs right off the bat, either. I’m just concerned about accuracy.

    And what about the “goodly chunk of state and local change”? Is that saying it is costing the state $24,000 (One North Carolina Fund of $24,000 X 2 required local matches/20 jobs created = $2,400) for each job created? Is that a thing? Are there figures on what it costs to create a job in NC? In manufacturing? In retail? In education? *shh! In government?* Someone please teach me because my economics classes were taken a long time ago and I didn’t do that well!

    And is the cost of creating those jobs a $2.5 million boon for East Flat Rock? I’m just curious and looking for facts. Please read the next sentence carefully:

    I AM ASHAMED OF VOTING FOR PAT MCCRORY!

    With that being said, someone that is a professional in state economics please reply!

  4. Alex

    April 1, 2014 at 11:53 am

    Surely you are kidding ML. The ACA has to be paid by higher taxes,higher premiums,and eliminating cheaper major medical policies. There is no other way.

  5. ML

    April 1, 2014 at 12:38 pm

    You misunderstand my point. Insurance has always worked that way, it’s the nature of the business. Some will pay more because others pay less.

  6. LayintheSmakDown

    April 1, 2014 at 10:36 pm

    Actually ML/Alan, almost all will pay exponentially more so some chosen few can pay less. Or not at all as the actual payment rate vs. signup percentage shows.