October 12, 2011

Running the State as a Giant Corporation Is a Bad Idea

Justin Katz

Part of what bothered me about Governor Chafee's "findings" in Pittsburgh was the broader economic strategy whereby the state government tries to run Rhode Island like a giant corporation — picking preferred industries, backing particular players (as if they are subsidiaries), and trying to shape available public resources (such as the I-195 land) toward a specific vision. That's the impression also given by a recent article in which Monster Mini Golf founder Christina Vitagliano complains about Rhode Island's handling of businesses:

... even a glowing skeleton doesn't make Monster Mini Golf a biotech company, and Vitagliano said her firm doesn't fit in with the state's plans to create a "knowledge district" of life science and high-tech companies.

"No one knows we're here," Vitagliano said. "I'm not a pharma company, I'm not a medical-device company, I'm not Curt Schilling. There has been zero help from anyone."

She said that's a stark contrast to her experience in Las Vegas. "When you walk into City Hall in Vegas, they welcome you with open arms. It's a very pro-business, proactive city."

Who in government would have gone in search of a black-lighted mini-golf company as an economic development project? Mr. and Mrs. Vitagliano had a unique vision, they chased it down, and it's been a success. That's real entrepreneurship, and government — with its vested interests, direct line to bar-raising regulation for big-rolling incumbent organizations, and access to NIMBY politicians and constituents, alike — is ill suited to encourage it.

The best strategy is simply to get government out of the way.

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Centralized govt's full of politicians who have never had to make a payroll,take a risk,hire,fire,market,etc. are a disfunctional entity in the way of business success. Entrepreneurs are the backbone of this country. RI's pols have cast the die resulting in the state being the largest employer rife with public unions and unfunded mandates (see pensions). Will the state's pols ever learn? The future hangs in the balance.

Posted by: ANTHONY at October 12, 2011 8:49 AM

Biotech is a 200+ billion dollar industry. But, oh, why, why doesn't the state focus on more mini-golf?!

"The best strategy is simply to get government out of the way."

Hilarious! Isn't that what Vitagliano is complaining about? "No one knows we're here."

Posted by: Russ at October 12, 2011 9:31 AM

btw, Ms. Vitagliano (if you're out there), why not consider Providence? We'd love to have you here.
www.opportunityprovidence.com/supporting-your-business

Posted by: Russ at October 12, 2011 9:46 AM

We really can't fault Russ for his ignorant comments. The Projo did a real poor job in exploring what she was trying to say. Then again, I don't recall her asking for a handout either so what was your point Russ?

Posted by: Max D at October 12, 2011 10:20 AM

Ms. Christina Vitagliano isn't lining the pockets of the politicians with campaign donations.

Good for her!

Posted by: Mark at October 12, 2011 11:07 AM

"We really can't fault Russ for his ignorant comments."

More personal attacks from the local thugs, eh? What a shock. How many start-ups have you run, Max?

"Then again, I don't recall her asking for a handout either so what was your point Russ?"

Well, at least I actually read the article. Here's the full quote:

“No one knows we’re here,” Vitagliano said. “I’m not a pharma company, I’m not a medical-device company, I’m not Curt Schilling. There has been zero help from anyone.”

I wouldn't call that necessarily "asking for a handout," but I wouldn't call what most knowledge district firms need a handout either.

One mistake above... I forgot that Ms. Vitagliano's company actually is headquartered in Providence (I was thinking of the storefronts). But Providence has help for those who ask.
www.opportunityprovidence.com/supporting-your-business/business-liaison

I wonder if she's reached out?

Posted by: Russ at October 12, 2011 11:14 AM

Too bad Justin wasn't against running the state like a business when the last guy promised to do just that!
www.projo.com/news/content/governor_12-26-10_PELLKK1_v1.2d56b8a.html

“I sense a freshness in the air,” said the retired Cookson America CEO, who came into office promising to make the state run more like a business, usher in 20,000 new jobs, and fix the public schools.
Posted by: Russ at October 12, 2011 2:45 PM

Isn't that what they all say Russ? Of all the governors in the last couple of decades he probably came the closest to running it like a CEO. There's a philosophical difference between how a career politician thinks a business should be run and an actual CEO. Carceiri wasn't the nicest guy and he certainly stumbled a couple of times but I'll give him credit for trying to cut the state budget and address the pension crisis in bad times. Don't mistake that for an endorsement of his tactics but he went after it up against a resistant GA.

Posted by: Max D at October 12, 2011 3:08 PM

Funny thing is, economic development is one of the areas I (and other progressives) supported Carcieri, who was a big proponent of the knowledge district. I had opportunity to speak with Saul Kaplan a number of times and thought he was unfairly blamed for job losses outside of his control.

rifuture.org/saul-kaplan-resigns-from-edc.html

Posted by: Russ at October 12, 2011 3:49 PM

"... he certainly stumbled a couple of times but I'll give him credit for trying to cut the state budget and address the pension crisis in bad times."

Agree, in spades.

Posted by: Monique at October 12, 2011 4:37 PM

What legitimate business would be self-destructive enough to open its doors in Rhode Island when there are low-tax, uncorrupt states with right-to-work laws available? Even the recipients of all these corrupt loans, grants, and tax breaks Russ loves should be hesitant to tie the financial future of their company to the arbitrary whims and fads of highly questionable state politicians. Most people don't work in "knowledge jobs," whatever the heck that even means. Elitist nonsense from the central planners that will lose out every time to fair and open tax and labor policies in business-friendly states.

Posted by: Dan at October 12, 2011 6:05 PM

Dan, good to see you getting some overtime.

Posted by: David S at October 12, 2011 7:41 PM

David - I don't understand your comment. Is it supposed to be funny?

P.S. Overtime pay is not available to me, unlike many RI government workers. Although my job does often require extra hours.

Posted by: Dan at October 12, 2011 8:05 PM

poor dan aka db... I quess you do understand. Right to work and right to complain. You do both in abundance. Oh, and know a lot too. Don't step on Joe.s toes though. In the know it all category.

Posted by: David S at October 12, 2011 9:03 PM

db? I don't know who you think I am, but those aren't my initials.

Why don't you stop speaking nonsense and say what you mean?

Your overtime comment still makes no sense.

Posted by: Dan at October 12, 2011 9:40 PM

So very Rhode Island... people with single-name nicknames arguing with each other over who is and who isn't someone in real life.

Funny thing, I let everyone on here know exactly who I was when I was volunteering for the Chafee campaign in 2009-2010, and no one came to my house and tried to kill me, lol.

So really, either:
A) Stop caring about who people are in RL, or
B) Stop posting on an online Internet blog which allows for anonymity if it bothers you so.

But trying to guess / attack the person IRL? Bad form David S. And I sure as heck hope you aren't who I think YOU are, given the db initials you tossed ;)

If so, when I get back to RI (if ever?), you're getting tossed in the river. No joke.

Posted by: jparis at October 13, 2011 11:07 AM

I've said it before - basically I have no problem with sharing personal information, but I use only my first name on here because I fear retaliation from the RI unions, particularly NEARI. I know at least two of their leaders have been arrested for harassing criminal behavior in the past, and I have witnessed them attempt to get conservative-libertarian individuals fired from their jobs through RIFuture. My family and my employer don't deserve to be harassed for my political views.

Posted by: Dan at October 13, 2011 5:25 PM

In your case Dan, remaining anonymous makes a great deal of sense to me. Just to clarify though: I was saying that David S. shouldn't care who you are IRL, or that he should give up on blogs.

It's completely your choice to remain anonymous, which if you are in a position of power, I actually respect even more than using your real name (which could gain you things, as well as the losses you mentioned).

No one should be harassed for what they say online, as long as it isn't blatantly slanderous or inciting/condoning violent action. That's my view at least.

Posted by: jparis at October 13, 2011 9:10 PM

jparis-it's each person's choice to post under their name or not.
Since I'm retired I don't care if people know my name or not,and if I do make an ad hominem attack,I want to take responsibility for it.
I've had many made at me here and on other blogs and it's no big deal.
I can't believe some of the utter sh*t I see on Facebook where people have bitter feuds.
They should get a life.
I got into it here with one "Rhody"because that A hole made "factual"allegations about me which were outright lies-a lot different from trashing my point of view,which is part and parcel of blogs.
Same with "Stuart"and "triplechard",whom I think are the same person.
I do believe there are people at the NEA who go outside the boundaries of decency and even legality to harrass those who oppose them.

Posted by: joe bernstein at October 14, 2011 6:55 AM

If so, when I get back to RI (if ever?), you're getting tossed in the river. No joke.
Posted by jparis at October 13, 2011 11:07 AM


Care to explain? No joke? I don't get this.

Posted by: Phil at October 14, 2011 9:59 PM
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