You would think government has done enough to crush businesses and families to save us all from a fake killer flu. But your money was burning a hole in the pockets of Yuba-Sutter Supervisors. And, when they get the itch to spend other people’s money there is trouble ahead.
Politicians are expert at taking money from one group and giving it to another, thus looking charitable and claiming they saved a starfish.
Government is always broke and needs to raise taxes until it wants to spend and then $250,000 miraculously appears. Magicians, they are.
Each county sent $250,000 to the Yuba-Sutter Economic Development Corporation (YSEDC) which then gave the money to 28 businesses out of more than 70 applicants. These are short-term ‘gap’ loans to help until the politburo allows people to leave home.
This is called crony-capitalism. Government picks ‘winners’ and ‘losers’ since all of the current ‘winners’ are in competition with ‘losers’ from a similar occupation. Crony capitalism is an “economic activity characterized by close, mutually advantageous relationships between business leaders and government officials.”
In 2017, the US Census Bureau said Sutter County had 1,780 businesses and Yuba County 819 or 2,599 in all. That leaves 2,571 ‘losers’ since the government crowned just 28 ‘winners.’ Of course, the biggest losers are the taxpayers.
The April 24, 2020 edition of the Appeal Democrat lists the businesses getting money. Please look there to note the connections between recipients, YSEDC directors (see at YSEDC.org) and the Supervisors (see county websites). There are plenty.
The Appeal highlights former Yuba County Supervisor and current Olivehurst Public Utility District director Mary Jane Griego as a worthy recipient of $20,000. She owns Duke’s Diner, a popular eatery on 7th Avenue in Olivehurst, CA.
Politicians and bureaucrats take care of Mary Jane. Out of all the rough roads in Olivehurst, a few years back when Yuba Water Agency gave funds for repaving Ms. Griego’s 7th Ave. was paved first.
In 2001, when the Yuba Children and Families Commissions was giving $5,000 mini-grants, then Yuba County Supervisor Griego asked and was awarded a grant before even filing a formal request. The minutes say she received her $5,000 to “beautify Olivehurst Ave.” after agreeing to submit paperwork. Some commissioners voting for the grant were her county employees.
The project to start on April 28, 2001 was to “get young people involved in the community.” Once completed there was to be ongoing maintenance. The objective was to make “a safer environment and eliminate the criminal element.” This was all to be accomplished by simply installing flowers.
Unfortunately, according to Olivehurst people there was no plan for irrigating the plants, no maintenance and the flowers soon died. Others were given away or perished in Griego’s backyard. All the money was not spent.
The Commission minutes say Ms. Griego claimed to have spent $2,500 and wanted to keep the remainder for other needs in her district. Chairperson Evelyn Joslin notes that Ms. Griego was “confused about her responsibility to do surveys, and none were done.”
Commissioners bantered about the money into November 2001 when they finally voted to have her return the remaining $2,500 to the Commission. One of the Commissioners voting for the motion to refund money was Dr. Joseph Cassady, the Yuba County Health Officer who also served as the jail doctor.
Griego, then conspired to fire Cassady including requesting that the Attorney General and the State Medical Board investigate him. Her scheme ended with Cassady filing a suit against the county, getting a financial settlement for defamation and keeping his job.
Three Health Department officials working with Griego in her action against Cassady were fired. Griego remained a supervisor and continues to cash-in on government hand-outs today.
The government getting into the business of giving grants and loans often represents a conflict of interest, gets messy and wastes money.
Normally, YSEDC collaborates with federal agencies to provide loans. One government loan agency called the Small Business Administration (SBA) established in 1953, earned the nickname “Small Scandal Administration” by the mid-70s.
President Reagan’s budget director, David Stockman, called it a “billion dollar waste—a rat hole” that benefited few small businesses, while distorting credit markets. Unfortunately, both Republican and Democrat politicians continue to support government lending. They love to give your money to others.
Taxpayers end-up subsidizing these programs. It is not the business of government.
(Get Lou’s podcast at “No Hostages Radio” and his articles at nohostagesradio.com)
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