Bernero has a record for creating jobs, not Snyder
Your readers may wish to contemplate the following while they decide whether to vote for Rick Snyder or Virg Bernero for governor this November.
Rick Snyder claims he created jobs while an officer of Gateway Incorporated and as a venture capitalist. However, Rick Snyder became an employee of Gateway six years after Ted Waitt and Mike Hammond created and made a success of the computer company. Hiring practices would have been well-established by the time Rick Snyder arrived at the company. Jobs were outsourced to China and Mexico while Rick Snyder was a board member and was acting CEO briefly in 2006. The failing company was sold to Acer in 2007.
As a venture capitalist, Rick Snyder collected money from investors to finance start-up companies. Any jobs created by the start-up companies should be credited to their managers and not to Rick Snyder.
On the other hand, Lansing gained 3,100 new jobs in the past year while Virg Bernero was mayor. He helped obtain $161 million dollars of federal clean-up funds for Michigan and an additional $188 million dollars of construction funds for Lansing. And Virg Bernero balanced the Lansing city budget during each of the past 5 years.
Virg Bernero's state legislative and mayoral experiences will be useful as governor next year.
Donald J. Salberg Ann Arbor
Comments
Bear
Wed, Sep 15, 2010 : 1:29 p.m.
@ braggslaw, "People at the public trough will always argue for more I say no If you want money make it yourself" Tell that to the banks. Tell that to the thieves on wall st. gimme a break, your argument, while intellectually sound, isn't at all realistic.
Bear
Wed, Sep 15, 2010 : 1:26 p.m.
@braggslaw - Nicaraguan beatles???? Is that the fabuloso cuatro??? Doesn't anyone know how to properly spell anymore? But I take away from the intellectual conversation at hand....
DonBee
Tue, Sep 7, 2010 : 11:25 p.m.
@ Jeremy Peters - I spent the last couple of evenings crawling the 2005 to 2009 financial statements from Lansing. What I find is interesting, the budget was balanced with layoffs of city workers, jobs not filled, the zoo transfered to the county, lots of money from the Federal and State governments. Roughly 10,000 fewer police service responses in 2009 over 2005. A number of taxes seem to have increased as did fees for water, sewer and other city services. Lansing did nothing that other cities did not do over the last 4 years to stay afloat. All - I can not find the 3,100 new jobs in the City reports, I can find lots of businesses that relocated jobs from outside the city to inside the city. I can find call backs at existing plants. I can find state workers transferred from outside of Lansing to inside Lansing. Each report has a list of accomplishments and I feel for the surrounding townships and the county as Lansing reeled in taxbase and jobs from the surrounding communities. In short a net gain for Lansing but not for the state. I am not a fan of either candidate, and I can find fault with a lot of the claims on both sides when I dig in and do research. Unfortunately for both candidates, their records are out there for people willing to do the research. We don't need a fight in the state, we are just finishing several years of fighting and it did not bring new jobs. A new state constitutional convention will not help either, at least for several years. What we need is someone with the vision to set the state on a course and the support of the people to move that vision forward. I am looking for either candidate to come forward with a real vision for how to fix the state. There will be things in any plan that make people unhappy for one reason or another. There is no spoonful of sugar this time, we need to take the medicine and move forward. My mind is not made up. There are 8 weeks for these two to show that they can lead, not try to make the other one bleed.
Wolverine Fan
Tue, Sep 7, 2010 : 10:16 p.m.
Mr. Salberg's letter is lunacy. Government does not create jobs - gov't is a net consumer of economic resources and generates little other than waste, fraud, and entitlements (OK, i exaggerate a little, but not by much). Bernaro has not created jobs - pure unadulterated bullsh*t. Don't join the debate club - you would not fare well. i do not want this loud-mouth party hack in charge of my state and thank our lucky stars, he appears unlikely to win the guv seat.
mike from saline
Tue, Sep 7, 2010 : 1:57 p.m.
that's servants. sorry, I was in a hurry.
mike from saline
Tue, Sep 7, 2010 : 11:21 a.m.
yesterday, in his 1st posted comments on this story, "Edward R Murrow's Ghost" wrote the following; "the only thing businesses have interest in is profit. The term "socially responsible buisness" is an oxymoron." Later on, He refers to public employee's as "public sevents." Now there's an oxymoron if ever there was one!
AlphaAlpha
Mon, Sep 6, 2010 : 10:13 p.m.
"Required services include universal health care, federal child care support, full-employment stimulus policies, free public education at all levels, funding a national plan of conservation and green energy, increased social security, and subsidy of mass transit on a mass scale. " Required? No. While you might find them desired, they are not required.
braggslaw
Mon, Sep 6, 2010 : 8:41 p.m.
People at the public trough will always argue for more I say no If you want money make it yourself
Speechless
Mon, Sep 6, 2010 : 8:15 p.m.
"... Govt. is a necessary function just not one that should be expanded beyond required services....What is required?" Required services include universal health care, federal child care support, full-employment stimulus policies, free public education at all levels, funding a national plan of conservation and green energy, increased social security, and subsidy of mass transit on a mass scale. The U.S. falls far short in these areas and in others, whereas various other developed countries at least try. We can get a good start on funding these services — essential to a more civilized society — by at least doubling high-end tax rates on the wealthy, by closing tax loopholes and pork subsidies that benefit well-off individuals and corporations, and by reducing federal military spending from $661 billion annually down to, say, $161 billion a year (still more than any other nation). On the state level, required services include Bernero's proposed state-run bank, as a means to sidestep the ravages of Wall Street banks, along with state funding to complement federal aid in the areas mentioned above. A progressive tax overhaul for Michigan, which Bernero supports, will help get state-funded services moving forward again, rather than backward. Virg understands that Michigan residents will get nowhere under Snyders's plan to slash business taxes with no big strings attached. That would essentially provide a substantial reward to corporate interests for simply being around during a bad economy. The average resident gets nothing except the false promises of "trickle down" voodoo, when only "trickle up" will work.
AlphaAlpha
Mon, Sep 6, 2010 : 6:52 p.m.
If you are correct, then this article's premise is: fail. How about it Mr. Salberg?
Basic Bob
Mon, Sep 6, 2010 : 6:38 p.m.
The 'new' jobs in Lansing are mostly callbacks at GM Lansing Grand River assembly plant. Perhaps this meets the mayor's definition of 'new' since they work for the 'new' GM. The UAW can also take credit for job creation since they will need to keep their business agents, stewards, and union hall.
AlphaAlpha
Mon, Sep 6, 2010 : 5:52 p.m.
Veracity - "AlphaAlpha: The 3100 jobs are in manufacturing, according to state data. Retrieving actual names and addresses is unlikely." What state data? Please cite a source. Your statement, or that of the state, is quite suspect. There has been remarkably little manufacturing growth recently. State data is prone to computer model 'adjustments' as well. Names and addresses are not needed; a source link would lend you credibility.
braggslaw
Mon, Sep 6, 2010 : 3:39 p.m.
People are free to do whatever they want, within the law Don't make me pay for it
braggslaw
Mon, Sep 6, 2010 : 11:38 a.m.
Ann Arbor is the Michigan center for federally and state funded research into many things I consider a complete waste of money. So no I will not back off from that statement. I see some UM-DOE projects as a necessary evil(including battery charging and grid capacity) but federally funded projects on Elizabethan Poetry, paleontology, women's studies, etc. I consider an indulgence, especially at this time in economic history.
braggslaw
Mon, Sep 6, 2010 : 11:11 a.m.
Ghost, I believe the michigan state parks are self funded. That is they rely on what they charge to provide services. An admirable reorganization of previously broken money-pit. Instead of buying 4 pickups they now buy bikes for the rangers. Campgound hosts now serve as care-takers instead of fully funded and salaried park rangers. the park rangers can now do their real jobs. In states like Pennsylvania where there is not control feedback the budget run amoc Parks get shut-down, people go on strike etc.
braggslaw
Mon, Sep 6, 2010 : 11:08 a.m.
Ghost, I think you missed the point about required govt. services. Govt. is a necessary function just not one that should be expanded beyond required services. What is required? Certainly not a feminist study on the effect of the death penalty, or a UM study on Nicaraguan beatles funded by the federal govt. People who work in public jobs end up there because they don't want the demands or competition of a private sector job.
braggslaw
Mon, Sep 6, 2010 : 10:07 a.m.
wow plenty of dogma on this page... I am a numbers guy. Govt does not create jobs it merely is funded by the private sector to execute required govt. services. Let's say we have 5 people working in the private sector and 5 people working in the public sector. For all to have equall salaries the people working in the private sector would have to give half their salaries to the people working in the public sector. I think the private sector employees would have a huge beef with giving half their salaries away unless they had an enormous say in what the public sector employees did. (something that does not happen today). I suppose that the public sector employees could tax themselves to pay themselves (an irrational argument that is frequently posted on this web site)_ There is no "magical" public reserve of money. What the govt. gives away they take away from someone else. As Ann Arbor is one of the public money "black holes" for state and federal tax money it is no surprise that the public employees in NN Evoe will will argue that they are important and they contribute their fair share to society. I would argue that they do not. Those people are lucky they can indulge themselves on the public dime under the guise of benefiting society.
stunhsif
Mon, Sep 6, 2010 : 9:57 a.m.
Until Michigan becomes a right to work state, there is very little anyone can do to bring new jobs to Michigan. In the last five years, large companies like Subaru,Toyota and Volkswagen did take a "hard" look at our state but ultimately chose environments that they knew were more stable to allowing them to make profits. Over the same time period, companies like Delphi,Lear Corp,Visteon Automotive, Dura Automotive,Collins&Aikman and Metaldyne Corporation have all filed bankruptcy and all but Metaldyne have vacated and left this state. The state of Michigan is years away from a turnaround and the sooner we realize that, the sooner we can truly begin to do something about it. Right now we are treading water, soon too drown if we do nothing.
Jacob Bodnar
Mon, Sep 6, 2010 : 9:52 a.m.
Hold on a second. You don't credit Snyder for creating jobs when he provides capital to a business to hire workers or expand, yet you'll credit Bernero for creating jobs in Lansing when he essentially did the same thing, but instead probably provided some incentives. Unless those 3,100 jobs were all government jobs, how can you credit Bernero with creating them and not credit Snyder with creating jobs as a venture capitalist?
clownfish
Mon, Sep 6, 2010 : 9:37 a.m.
Snyders different venture capital adventures have done good, and bad. Some have gone on to create wealth for investors and jobs. One question I have is: how did the compensation packages of the upper management compare to the salary packages of mid-level employees? Did all boats rise equally? These ventures used borrowed money to create jobs. Bernero used some borrowed money to create jobs. The companies Snyder helped fund raised prices when new income was needed, isn't that similar to raising taxes/restructuring tax streams to fund new income streams...to pay down debt?
Veracity
Mon, Sep 6, 2010 : 8:32 a.m.
Here we go: Bablat: Allow Rick Snyder to indiscriminately eliminate government jobs and the associated services that they provide and you will not be happy with the outcome. Scooter dog: When was Virg Bernero ever out-of-control or in someone's face? He has expressed anger but not even to the degree that Anthony Weiner has displayed on the floor of the House of Representatives, more than once. What evidence do you have that Virg Bernero did not balance Lansing's budget, as stated? You do not have deficit spending with a balanced budget. And how many government jobs do you know were created by Virg Bernero? stunhsif: So you would not accept the return of some of your federal tax dollars to create temporary jobs? So Michigan's economy does not need the spending on consumption that will accompany the temporary worker's salary? And what about the lasting benefits from cleaning up Michigan and from construction? The almost $350 million brought back to Michigan is not "chump change." Mugsy: I guess balancing a government budget for 5 consecutive years does not mean much to you, nor bringing $350,000,000 to the state. The money is spent here and circulates through Michigan's economy. And you will not consider this helpful? sbbuilder (1): I concur with your acknowledging the fact that Rick Snyder would not have been able to prevent job losses in Michigan. And he offers no solution for the future. Certainly lower MBT will not translate into new jobs. Corporate "wisdom" dictates that demand must exceed supply before boosting production. Demand is in the doldrums with consumers. And, in order to minimize production costs, any new jobs will be created outside the U.S. where labor costs are much lower. The average wage earned yearly in China in 2008 was $4,225.69. American workers can not survive with that level of income. AlphaAlpha: The 3100 jobs are in manufacturing, according to state data. Retrieving actual names and addresses is unlikely. And, for more doubt about the significance of jobs Rick Snyder claimed to create as a venture capitalist, you should read the following Wall Street Journal article: http://blogs.wsj.com/venturecapital/2010/08/03/michigan-governor-hopeful-rick-snyders-venture-capital-past/ InsideTheHall: Hiring people is not job creation, you say. Then what is it? Whatever- it-is will pay salaries allowing more Michiganders to pay mortgages and consume, putting money into the Michigan economy. And this is not good? Scooter dog: Virg Bernero's ardor is understandable and even expected considering the seriousness of the issues. However, any claims that the mayor is out-of-control and in one's face is an exaggeration. sbbuilder (2): Employees are the greatest single cost to an employer who will keep as few of them as is possible in order to sustain a profitable company. And, companies will always try to hire the cheapest labor in order to minimize costs which means hiring overseas (or south of the border) if at all possible. That's capitalism, unfortunately but understandably. Macabre Sunset: So when the government pays for services rendered you would not call that a job? Try again.
Jeremy
Mon, Sep 6, 2010 : 6:49 a.m.
@Bablat, Probably too much to ask, but do your research - Bernero has balanced his city's budgets for all 5 years he has been in office as Mayor. But then again, some choose their own beliefs over the truth.
CynicA2
Mon, Sep 6, 2010 : 2:02 a.m.
Michigan has been slowly declining, economically and otherwise, for 30+ years. The reasons for this are far beyond the control of the state political apparatus, regardless of which party controls it. Neither of these candidates is any more likely to turn it around, than John Engeler or Jenny Granholm did. If anything, which ever one wins will fall victim to the process of decline, just as they did. Apart from some occasional successes locally or regionally, Michigan will continue to struggle for the foreseeable future.
st.julian
Sun, Sep 5, 2010 : 7:40 p.m.
Bernero has produced the following during his various tenures: 1) failure to advance Lansing economically in any meaningful fashion 2) failure to keep his word about that being mayor his the only job he wants 3) belieivng his own fairy tales 4) promising action but never implementing or completing it And, as I recall he's never had a real job not tied to government
InsideTheHall
Sun, Sep 5, 2010 : 6:33 p.m.
Ed: Read the book Liberal Fascism by Jonah Goldberg. Pay attention to chapter where Goldberg makes the case that Big Business loves Big Government regaulations because it raises the entry barrier for viable competitors. Big Business and Big Government in cahoots is not a good thing.
Speechless
Sun, Sep 5, 2010 : 5:28 p.m.
ERMG:  good comments!
AlphaAlpha
Sun, Sep 5, 2010 : 4:36 p.m.
So, can anyone answer as to the accuracy of the Lansing job numbers? It's a simple question; and it's the unsupported premise of the opinion expressed above.
Basic Bob
Sun, Sep 5, 2010 : 2:33 p.m.
@ERMG, I have to disagree with what capitalism has created. Look at all the well-paying jobs that could be done elsewhere for cheaper. The safest work conditions in the history of the world now exist in North America and Western Europe. Take these jobs to communist or socialist states and they have not developed these conditions. Same for the environmental records. How can you compare Michigan to, say, China, India, or Poland? Greedy capitalists may drive their competitors out of business, but on the other hand, greedy socialists eliminate competition with trade restrictions, nationalization, and excessive regulation. Business owners (capitalists) value their employees, although their generosity is limited by market forces. As long as a large number of people in this country desire to consume more than they produce, our standard of living will continue to fall. Responsible citizens will ensure the success of our state by voting their conscience, but more importantly by buying products which most benefit the economy of Michigan. Just say NO to cheap Asian imports.
Macabre Sunset
Sun, Sep 5, 2010 : 2:29 p.m.
Expanding government is not creating jobs. Try again.
Speechless
Sun, Sep 5, 2010 : 1:48 p.m.
"... Now, successful businesses treat their employees as valuable commodities...." "Hey, business is going great, and we bosses love your valuable work so much that we're taking the assembly jobs to Indonesia and most IT & customer support to India! Anyone wanna come along? Change is fun!" As Snyder knows well through direct experience, our arbitrary, import-driven economy acts as a "Gateway" drug leading to mass unemployment.
Speechless
Sun, Sep 5, 2010 : 1:24 p.m.
A central point of the letter writer is that Rick Snyder has no business, so to speak, trying to spin his past as Gateway chief and venture capitalist as de facto qualification for state leadership during a time of great economic crisis. He's another guy who's been an executive in business, nothing beyond that. Virg Bernero, meanwhile, has experience as an elected state official and currently manages affairs for a medium-sized city. He holds a central oversight role in balancing Lansing's budget and works to obtain federal funding that benefits city services and infrastructure. His job duties as mayor overlap to some degree with the responsibilities of Michigan's governor. At the end of the day, fixing Michigan's high unemployment and declining pay levels for working people requires an intelligent plan of action. Bernero has discussed taking concrete, long-term steps in response to economic crisis, including the establishment of a state bank modeled after North Dakota's successful, state-run operation, and progressive state tax reform. Snyder, in turn, mostly says, "Trust me! I do things in business!" Beyond that, he suggests cutting some taxes with no clear plan for covering the additional lost revenue — at a time when the state can barely fund its overly stripped-down services without federal stimulus.
sbbuilder
Sun, Sep 5, 2010 : 12:20 p.m.
C'mon, Ghost, now we're 'suspects'? Well, you're right on one account. The business of business is to make money. I'm not sure increased productivity equals squeezing employees. That's just good business. I think most employers have matured over the decades to the point where they value employees. Unions had to beat employers over the head early on to drive the point home. Now, successful businesses treat their employees as valuable commodities. Cheers.
eagleman
Sun, Sep 5, 2010 : 9:41 a.m.
Mugsy, why should anyone vote for a man who belongs to the party that has lead Michigan through the "..last few politicall disastous years"? He hasn't exactly lit the world on fire in Lansing either. As someone rightly points out, the jobsd created by Bernero are of a TEMPORARY nature.There is an end point to construction and clean up jobs--a fact that neither Donald Salberg or you seem to grasp. As for the "anyone who cares about Michigan" comment. What a perfectly ludcrious statement to make.Republicans and Demcorats alike care about this state. They just have different approaches to helping this state from its doldrums To be quite honest, I don't find either man to be particularly inspiring. Both are average at best candidates to me.
scooter dog
Sun, Sep 5, 2010 : 9:19 a.m.
From what I've seen and heard from Bernero I don't care if he was the eight wonder of the world. He is totally out of control in public and has a Big,Big mouth. I will not vote for his kind,PERIOD. I and I am sure lots of others are fed up with this notion of getting up in your face about you opponet in public,debates and in general. I think the only question that remains is, how big of a drubbing is snyder going to bequest on him election day.
InsideTheHall
Sun, Sep 5, 2010 : 9:10 a.m.
This "opinion" highlights the major difference bewteen the two parties. DEMS believe that grabbing government money and hring people is job creation. It isn't and is not sustainable. It is Peter/Paul economics and has never ever worked anywhere....I dare someone to give a tangible example. A sustainable economy can only come from the private sector with invested capital that will foster wealth creation. Not robbing Peter and giving to Paul and call it job creation. Keynesian Economics hopefully died for good during this "Recovery Summer"!
AlphaAlpha
Sun, Sep 5, 2010 : 8:55 a.m.
"On the other hand, Lansing gained 3,100 new jobs in the past year while Virg Bernero was mayor. " Very interesting. 3,100 jobs...according to whom? Working for whom? What kind of jobs? 3,100 net increase?
sbbuilder
Sun, Sep 5, 2010 : 8:54 a.m.
Gotta weigh in here. It has been pointed out ad nauseum that under Mr Snyder's watch, jobs were outsourced to China. In fact, virtually all high tech manufacturing jobs (apart from certain chip manufacturers) have left our shores. Which computer components, printers, IPad or ITouchs, laptops or any other periferals are manufactured here in the States? Precious darn few. It would be a miracle if he had managed to keep those jobs here in the face of every other one leaving. How on earth are you going to buy a printer for 50-60 bucks if made here? Also, venture capitalists have been the financial engine for creating new jobs for decades. They place their money at risk in order to have a potential gain. Those small start-up companies who do the hiring would be dead in the water if not for venture capitalists. Lastly, money coming from DC is borrowed money. That money is tacked onto the end of a very long bill that our grandchildren will be paying. I do not see this type of job creation as sustainable or prudent.
Mugsy
Sun, Sep 5, 2010 : 8:50 a.m.
Of course Bernero doesn't have a record for creating Snyder! But seriously (that is a horrific title for a piece in a news publication, though) - this opinion piece doesn't do much to show exactly why anyone who cares about Michigan, its economy and workers SHOULD be throwing their support behind Bernero. After the last few politically disastrous years for anyone working in Michigan, a change is necessary and Bernero is exactly the man to bring it.
stunhsif
Sun, Sep 5, 2010 : 8:25 a.m.
A2.com, At least you got this one right, it is heavy on opinion and the writers "feelings", rather than facts. I'm embarrrased I even responded to it. Exactly where did these supposed 3100 jobs Virgo created come from? Ah, federal stimulus spending which means these jobs will dry up as soon as the money is spent.
Bablat
Sun, Sep 5, 2010 : 8:19 a.m.
Is this a joke? Increasing Gov't payroll via deficit spending does not count as jobs creation!