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Daugaard French Cheese Subsidy Advances; Full House Debates $5M Appropriation Today

Governor Dennis Daugaard's French cheese subsidy passed its first hurdle yesterday. Near the top of House Bill 1060, the big pile of revisions to this year's state budget, is an additional five million dollars in "operating expenses" for the Governor's Office of Economic Development. That five million dollars covers the promise Governor Daugaard made to French cheesemaker Bel Brands to induce them to build a factory in Brookings.

Democrat Sue Wismer did offer an amendment to get the state to invest a comparable $5 million in immediate aid to education, but House Appropriations apparently considers subsidies to French cheesemakers a higher priority than direct support for South Dakota students and teachers. That amendment failed, and the committee moved the French cheese subsidy and the appropriations bill forward.

As the full House debates HB 1060 this afternoon (and I'm assuming they'll take at least a little time to actually debate it), I'm hoping we'll hear at least one Republican criticize this corporate welfare as a violation of free-market principles, not to mention this apparent abuse of power in which the Governor gets to make promises that the Legislature has to fund after the fact. But I suspect I'm hoping too hard... for political consistency.


  1. Mark 2013.02.20

    Whether or not this is sound economic development is one thing, but how is it not controversial for a state official to offer an inducement to a non-government (and foreign) enterprise before taxpayer funds are appropriated for such development? I must have missed something...

  2. Charlie Johnson 2013.02.20

    It's called one party in charge for too many decades.

  3. Steve Sibson 2013.02.20

    "It's called one party in charge for too many decades."

    The SDGOP could not have done this without the help of Obama's debt financed stimulus, which is based on Keynes:

    The Keynesian theory of economics has swept the academic world to an extent unprecedented in modern times. The focal point of the Keynesian doctrine in the United States has been Harvard University. From Harvard Keynesian influence spread to Yale, Princeton, University of Chicago, University of Wisconsin, Massachusetts Institute of Technology and eventually into almost every College and University in the United States.

    From academic circles the Keynesian dogma percolated into government departments on all levels. Not only those bureaus having to do with economic and statistical matters were affected but policy making bodies such as the State Department, the Presidential office, the Treasury, the Department of Agriculture, and the Department of Labor were dominated by Keynesian thinking.

    Huge tax-free Foundations, such as the Ford, Carnegie and Guggenheim Foundations, backed by billions of dollars, became the nesting places of Keynesism.

  4. larry kurtz 2013.02.20

    Which trade union will represent the wage slaves at this factory?

  5. Vincent Gormley 2013.02.20

    Another invalid and contrived "ism" in effect a Sibby-ism. Try again Steve shifting the blame always works, huh? I think not.

  6. Steve Sibson 2013.02.20

    Vincent, I am not shifting the balme. It is a shared balme, thanks to ability of the ruling elit to indoctrinate. When you get to the4 end of this excerpt, understand that I am not "buying" (and note the reference to large corporations that would include the French cheese maker):

    Keynes’ attitude toward the free enterprise system was in all essentials the same as that of the Fabian Socialists. The Fabian Socialist project of allowing private enterprise to operate while gradually chipping away at its foundation until the government takes over all functions was identical with the Keynesian concept. In End of Laissez-Faire Keynes advances the following preliminary softening-up stage as a basis for a future socialism:

    I believe that in many cases the ideal size for the unit of control and organization lies somewhere between the individual and the modern State. I suggest, therefore, that progress lies in the growth and the recognition of semi-autonomous bodies within the State—bodies whose criterion of action within their own field is solely the public good as they understand it, and from whose deliberations motives of private advantage are excluded, though some place it may still be necessary to leave, until the ambit of men’s altruism grows wider, to the separate advantage of particular groups, classes, or faculties—bodies which in the ordinary course of affairs are mainly autonomous within their prescribed limitations, but are subject in the last resort to the sovereignty of the democracy expressed through Parliament.(27)

    Keynes along with his Fabian cohorts considered that the large corporations had “socialized” themselves to the point where the profit motive became secondary. Keynes boldly declares:

    In fact, we already have in these cases many of the faults as well as the advantages of State Socialism. Nevertheless we see here, I think, a natural line of evolution. The battle of Socialism against unlimited private profit is being won in detail hour by hour.(28)

    Keynes’ disagreement with what he calls “doctrinaire State Socialism” is not one of principle but one of tactics. What he means by doctrinaire Socialism is the Socialism of Marxist groups.(29) These expressions have been used to try to give Keynes an anti-socialist coloring, in order to sell Keynes to non-leftists.

  7. larry kurtz 2013.02.20

    Whose water rights are being bumped for this plant and who will treat it before it's pumped into the already diseased Big Sioux River?

  8. Steve Sibson 2013.02.20

    Larry, how much would doubling the dairies in South Dakota do to our environment? Large French cheese makers require a healthy supply of cheap milk.

  9. Mark 2013.02.20

    Keynesian, Fabianism, Globalism? The relevant issue is transparency and accountability about the use of taxpayer funds, right? Not only is this a special inducement, but one made without any advanced legislative authorization to do so. Sibby, please don't cloud this real issue here.

  10. Steve Sibson 2013.02.20

    So why is the South Dakota Democratic leader of the Seante Frerichs voting in favor of taxpayers' funding roads to ship California's imported dairies to the French cheese maker?

    And is also now on board with the SDGOP economic development plans:

    "Senators on Tuesday, meanwhile, kept alive two empty measures sponsored by Sen. Corey Brown, R-Gettysburg. He said he thinks legislators are “exceptionally close” to completing a big package and both bills will be needed later for the final language to be inserted.

    Senate Democratic leader Jason Frerichs, of Wilmot, said he appreciates the “palms-up” approach being taken in the formation of the plan."

  11. Steve Sibson 2013.02.20

    "The relevant issue is transparency and accountability about the use of taxpayer funds, right?"

    So Mark, why is Frerichs calling the passage of empty bills by the SDGOP a “palms-up” approach. Seems "secret" to me.

  12. Jerry 2013.02.20

    In all of the posts, I have noticed one thing. Ole Denny gets off without comment. It looks like we have accepted his dictatorship with open, loving arms. Ah, the sheer joy of one party rank and file. As in all dictatorships, all the resources are peddled abroad. Denny gets to take from the poor and the children and bequeath it to the foreign powers. Denny loves him some XL Chinese (Koch Brothers are joined at the hip with our enemies) and some Powertech hooligans as well. Welcome to the New Republican world, if you can pay, you get to play and the resource slots are hot!

  13. Bill Dithmer 2013.02.20

    I'm just thinking about how much fun it would be to play poker with someone elses money.

    Still blind

    The Blindman

  14. joelie hicks 2013.02.20

    I am a republican and I am enraged.
    I hope some of our reps are too.

  15. grudznick 2013.02.20

    Are we all sure this isn't french math?

  16. Douglas Wiken 2013.02.21

    It is not socialism, communism, new age ism, old age ism, it is corrupt crony capitalism. Has nothing to do with Keynes either. It has much in common however with rotting garbage.

  17. Earl Hanson 2013.02.21

    While on the subject of 'give-a-ways', at least for this one, we know what the amount will be. Can anyone in this State tell me the amount of the grants that was handed to the Aberdeen Packing Plant by Rounds and Daugard? I've been trying for a year and a half to get the answer to this. Why is this such a secret?

  18. Steve Sibson 2013.02.21

    Earl, there is not enough transparency. Just like the $5 million going to the French cheese maker is being buried in a lengthly appropriations adjustment for what the legislators approved last year. There goes one-third of the excess revenues.

  19. larry kurtz 2013.02.21

    Little does this factory realize that it could massage its margins by offering union-processed cheese from organic, free-range sources, produced with zero-emissions, carbon-neutral, low-impact, but nonetheless invasive, cattle species.

  20. caheidelberger Post author | 2013.02.21

    What 'ism it is doesn't matter. Voters don't give a rip who this connects to Keynes, Marx, or anyone other than the man in the big chair. Let's call it Daugaardism, let's put it in this governor's lap, and let's raise hell about it in 2014. Steve, you ready to help?

  21. Jana 2013.02.21

    Is anyone keeping track of the shenanigans going on in Pierre so we can remind voters of what the SDGOP thinks of them the next time we have an election?

    Ben? SDDP?

    Let's see there's the gunslinger bill.

    Giving nuns the one finger salute for their support of Medicaid expansion.

    The no use of legal medical marijuana in SD because it could harm people around them.

    Wait for it...

    Then voting to make sure that people who have been diagnosed and involuntarily committed for psychiatric care because they pose a threat to others can still have guns vote.

    HCR 1007 and 1008 standing up against the threat of Agenda 21 psychosis and it's accompanying climate denier partner. Read to the end of this story and tell me that these people are sane. And Hickey compares the scientists who believe in global warming are wow. I bet he really thinks that National Geographic is the tool of the devil for their story on oceans rising and what causes it. I was a little disappointed that there was no mention of astrology.

    Giving tax breaks to wealthy parents who can afford to send their children to private school.

    Giving the finger to stupid and lazy voters who voted against the large project bill with HB 1161.

    Giving the finger to voters and slipping the $5M in the GOED budget to cover the French Cheese factory. Of course, after the Governor or his staff called voters stupid and lazy, should we have expected anything else.

    Giving the finger to the stupid and lazy voters who rejected 1234 last year by bringing it back in pieces.

    Giving voters the finger over denying the amendment to raise their mileage allowance by giving themselves a 10% daily raise. (they figure we'll be too stupid and lazy to remember.)

    Giving home schoolers a lower thresh hold than public school kids on getting an opportunity scholarship.

    Giving those that torture and kill dogs, cats and horses a wink and a nod to go with a slap on the wrist. Not to mention accusing real South Dakotans of being shills for out of state interests. (Hello ALEC!)

    Voting themselves longer terms.

    Keeping redistricting a game of petty party politics rather than fairness.

    Votes for HB 1113 making sure that they could still avoid transparency...see voters are stupid and lazy.

    The special brand of crazy of HB 1100.

    Seceding from the United States...and nullification of federal law with SB 207 and HB 1222.

    Claiming you are for small government and then proposing the most bills in over 25 years. 490?

    HB 1236 giving a thumbs up to Doctors lying or withholding information from their patients.

    Killing a bill to keep the SoS from politicizing elections.

    A bill to give concealed carry permits to anyone who is breathing.

    A vote to give parents a wink and a nod to throw a graduation kegger for underage kids.

    A bill to expand gambling in South Dakota...and no bill to outlaw what the Bible calls a sin (usury) ...I love it when the GOP gets all high and mighty on morals and conveniently forgets these glaring exceptions.

    And don't forget that there are a big number of placeholder bills yet to arrive. You don't suppose there's any funny stuff in you?

  22. Steve Sibson 2013.02.22

    Yes Jana, it is time for some traditional conservatives to be put into office and kick out the shadow government that control both parties and restore the Constitutions.

  23. Steve Sibson 2013.02.22

    "Steve, you ready to help?"

    I am already working it. The problem goes way beyond Daugaard. It is the money that backs him and others that will allow their gravy train to continue. Money created by government sponsored monopolistic agenda that create oligarchies. That is why those of us who want to lead the reforms have to understand the role of Keynes and Marx. And based on what I am reading, Stalin played a huge role during the FDR, Truman and Eisenhower era.

  24. larry kurtz 2013.02.22

    How much snow have you got, Sib?

  25. joelie hicks 2013.02.22

    Like Steve, I am hoping for a Gop gubernatorial primary. Jana, plenty of democrats voted for 1068, they all voted for 1048. A few Republicans voted against 1068. SD politics is way beyond party affiliation.

  26. Steve Sibson 2013.02.22

    Larry, about 3 or 4 inches of fluffy stuff.

    And Joelie is right, once we stop with the partisan party theatre, we can start seeing who are the real enemies.

  27. Vincent Gormley 2013.02.22

    Conservatives always screw things up and make matters worse. Collectively they haven't got enough cells to create a brain.

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