Category Archives: Business

Off to Davos: Trump’s Dirty Dozen head out of town

December is only just drawing to a close, and the Trump gang has almost already done a winter’s worth of damage to the less fortunate.  Donald shut down the federal government in a temper tantrum over funding for his “great, beautiful” border wall, while his DHS secretary continued to oversee the separation of a record number of migrant families forcing the children into unsafe facilities and tent camps. And in a sort of bizarro holiday “gift” Trump took moves to add work requirements to the Supplemental Nutrition Assistance Program (SNAP), reversing just-added protections passed in a bipartisan Congressional farm bill potentially denying 755,000 people SNAP food & nutrition benefits by his action .

So, with all that work done … all that “winning” under their belts, in late January some select Team Trump members and Donald himself will pack their bags and fly off (at U.S. taxpayers expense) to Davos, a luxurious mountain resort in Switzerland to attend the World Economic Forum. The forum is a gathering of the world’s international economic movers & shakers: powerful heads of state, CEO’s, the mega-wealthy, and royalty discuss how to best shape global, regional, and industry agendas for themselves.davosdozen2

Trump and roughly a dozen other White House officials will head to Switzerland for the conference, which will bring together powerful political and business leaders from Jan. 22-25.

Treasury Secretary Steven Mnuchin will lead the U.S. delegation, which will also include Secretary of State Mike Pompeo, Commerce Secretary Wilbur Ross, Labor Secretary Alex Acosta, Transportation Secretary Elaine Chao [wife of Senate Majority leader Mitch McConnell], Homeland Security Secretary Kirstjen Nielsen [rumored to be leaving in Feb.], Small Business Administrator Linda McMahon and U.S. Trade Representative Robert Lighthizer.

White House advisers Jared Kushner, Ivanka Trump and Chris Liddell [White House Deputy Chief of Staff for Policy Coordination] will also attend.

Govexec.com looked at the planned expenses for the trip as of December and found that hotel costs have already reached $2.9 million. The costs already obligated include $600,000 for the State Department to lease a small apartment building, $142,000 for miscellaneous staff apartments and $230,000 for “POTUS Functional Space” at the Intercontinental Hotel, where Trump stayed last year.

Not included in these early cost figures is approximately $2.2 million for Air Force One to haul Trump there and back or Marine One helicopter to scuttle him from Zurich airport to Davos and around those environs once he arrives in Switzerland.

Trump and entourage will get to schmooze with all their Russian counterparts: the oligarchs. A problem and threatened boycott by Russian president Putin was settled after a last minute deal was worked out with forum organizers to allow certain Russian oligarchs under sanction to attend. Ever willing to help them, Trump pitched right in and thoughtfully removed sanctions from one Russian magnate’s businesses.

So the Russians are coming to Davos, and Donald may even get to enjoy some quiet time with his handler Vladimir Putin, all courtesy of the U.S. taxpayers. Happy New Year.

First Step Act: CoreCivic & GEO Group’s prison break? Updated

[Update 12/19:  The First Step Act made it through the Senate with support from the leadership of both parties. The vote for the bill which will affect one tenth of the federal prison population was 87 yeas to 12 nays – all from Republican senators.

Steve Benen at the Maddow Blog speculated on why Donald Trump championed the bill: As for why Donald “tough on crime” Trump would endorse such a package, that’s a little tougher to explain. My best guess is that the president has no idea what’s in the bill, but he likes the idea of signing bipartisan legislation on an important national issue.

Trump may not know the details but he and certainly son-in-law Jared Kushner are aware of the benefits their friends in the for profit prison business are expecting to see.]

Somehow between negotiating a peace settlement in the mid-east, defending his friend Saudi Prince Mohammed bin Salman the accused murderer of Washington Post journalist Jamal Khashoggi Trump’s utility man, son-in-law Jared Kushner, has also been the administration’s driving force” behind The First Step Act, a criminal justice reform bill that will be voted on in Congress next week according to the NYTimes.com.

The bill’s advocates say Mr. Kushner’s efforts were part of the reason Mr. McConnell reversed course, announcing that the Senate would vote on the bill next week. But even more important was his ability, over a course of years, to make Mr. Trump comfortable with the need for criminal justice overhaul in the first place.

“The bipartisan coalition was there before Jared showed up,” said Ronald A. Klain, a former senior official in the Obama and Clinton administrations.“The Koch brothers deserve credit for that. But if Jared got the president to be for it, that is a key part of getting it done, and he does deserve credit for that.”corebreak1

Criminal justice and the federal prison system desperately need reform, and parts of this bill may help but don’t be too quick to think good thoughts about Trump and the GOP efforts. It appears for all the world as if private prison corporations such as GEO Group and CoreCivic (big GOP donors) will be getting a helping hand as federal policy emphasis shifts from their bread and butter incarceration business to  treatment/care franchising.

Oh, and… here in Vermont Gov. Phil Scott and CoreCivic cozied up together on a plan for building a giant 925-bed prison/treatment complex in northern Vermont’s Franklin County. Negative feedback from the public and virtually every Vt. public official and legislator, regardless of political affiliation, landed the project in limbo for the time being.

CoreCivic has invested donations directly in Governor Scott’s election campaigns and indirectly through their contributions to the  Republican Governors Association which funded Scott ‘s  TV adverting during the recent campaign.

Nationally after losing federal contracts under the Obama administration and opposing reforms, for-profit prison interests threw their lot ($$$) in with Trump and the GOP when it became clear reform was likely to happen.

The Tampa Bay Times reports: For their part, GEO Group and CoreCivic have closely aligned themselves with Trump. Each donated $250,000 to Trump’s inaugural fund. Last year GEO Group moved its annual leadership conference from a venue near its Boca Raton headquarters to a Trump-owned Miami-area golf resort, the Washington Post reported last year.

GEO has hired lobbyists close to the president including influential Florida powerbroker Brian Ballard. It heavily supported Trump ally Gov. Rick Scott in his race for U.S. Senate. The company, which operates five facilities in Florida, and its CEO George Zoley donated $414,000 to [Rick] Scott’s campaign and various related committees, more than it gave any other candidate.

Trump and for-profit prisons are again in lockstep on the FIRST STEP Act.

Hopefully there’s some smidgen of actual reform in this bill, but pardon me if I  believe the first step Trump, Kushner and the GOP take is to give their prison corporation buddies a break.

Free Flannel & Half-truths: Vt Commerce and Community Development Fall Foliage Guide:

VTDigger.com has partnered with politifact.com and are now using their honesty lantern to check the state’s facts. In their latest fact-check, looked into a statement made by Agency of Commerce and Community Development Secretary Michael Schirling (formerly Burlington’s top cop) in response to a Saturday Night Live TV comedy sketch that parodied Vermont as “a Caucasian paradise.”  In his press release to Boston.com about the skit, Schirling said: “We invite SNL viewers to Vermont to see all that we have to offer, including our increasingly diverse communities and wide array of tourist destinations including the African American Heritage Trail.

Now is a perfect time to visit or to consider a move here. The leaves are changing and so is Vermont,” he said.leavesRturning

He also noted it was true “we do lack a good hip-hop channel,” plugged real Vermont maple syrup, and even generously sent a free (tax-payer-funded) load of Vermont flannel shirts to the cast of the NYC-based show.

Vtdigger.com dug into that response: The statement that Vermont is becoming increasingly diverse needs further clarification. Schirling does not explain that the increase in Vermont’s racially diverse populations is slight.

[…] The U.S Census information Shirling used showed that Vermont as of 2017 was 94.2 percent white [while] it had been 95 percent white in 2013. Vtdigger explained: From 2013 to 2017, the increase in the African-American population from 1.1 percent to 1.3 percent was not statistically significant. But the percent change in the Asian and Hispanic populations was: Asians went from 1.2 percent of the Vermont population to 1.8 percent, a 0.6 percentage point increase; Hispanics went from 1.5 percent to 1.9 percent, a 0.4 percentage point increase.

They rate his statement Half True.

One commenter on Vtdigger.com’s fact check  wondered:  Who really cares what SNL spoofs? […] It’s a C-O-M-E-D-Y show, too bad people feel the need to defend VT from a comedy skit.”

Good question. Well, I wonder if the administration’s sensitivity can be traced back to an opinion piece early this summer during Gov. Scott and Sec. Schirling’ splashy roll out of their $10,000 move-to-Vermont scheme. The plan, part of Scott’s Stay to stay and Think!Vermont  promotional programs, targeted young professional people and planned to pay them to move to Vermont and work remotely out of state.

Wall Street Journal columnist Jeff Yang wrote the following in a criticism of the scheme for CNN titled The Problem with Vermont’s bright idea: What’s ironic is how inside the box its “outside the box” thinking really is. Because while Vermont could be taking this moment to bring new diversity to a state that’s the second-whitest in the United States, it’s instead investing in initiatives that could easily end up maintaining the state’s culturally monolithic status. If Vermont had aimed this policy at explicitly encouraging new Americans to migrate to the state (the policy does not), it would be redressing a significant shortfall in the state’s demographics.” [added emphasis]

Sure seems like the SNL joke touched a nerve in the image-conscious Scott administration over their expensive glossy promotional schemes. But if they are still into giving out free flannel shirts — I could use a couple, size large please — I’ll stay right here in Vermont.

Rocket $cience? NASA may dip into ads & naming rights

Another bad idea crawled out of the swamp of stupid inhabited by Trump and his appointed department secretaries and administrators. Trump’s recently appointed head of NASA Jim Bridenstine is reportedly exploring selling advertising and naming rights to U.S. space program rockets and other spacecraft. That’s right — the United States space program, once the pride of the nation and envy of the world, may now sell off advertising rights for “extra cash.”

The NYTimes.com on Jim Bridentstine’s “vision”: “Is it possible for NASA to offset some of its costs by selling the naming rights to its spacecraft?” he asked during a meeting of a council that advises NASA. “Or the naming rights to its rockets? I’m telling you, there is interest in that right now.”[…] Mr. Bridenstine has asked a committee of the NASA Advisory Council to explore whether it might be done, despite regulations or laws that seem to prohibit such activities. He also raised the possibility of allowing NASA astronauts to sign endorsement deals.adonthemoon

So who is Jim Bridenstine, the new head of NASA? Well…Bridenstine is a former US Navy pilot, executive director of the Tulsa Air and Space Museum and a three-term Tea Party GOP congressman from Oklahoma. He had a little ethical lapse while in Congress — “called on the carpet” you could say. The issue surfaced in 2015: Bridenstine was involved in an ethics controversy when it came out that in May 2013 he and nine other members of Congress and some staffers took a trip to Azerbaijan that was found to have been paid for by that country’s government-owned oil company. Bridenstine also received two rugs, one valued at $2,500 and another at $3,500. He ultimately returned the rugs. On top of that as a Tea Party congressman he holds many extreme rightwing positions including anti-LGBT views, and until recently climate change denial. “I heard a lot of experts, and I read a lot,” he is quoted as saying after joining NASA.

But here’s the best part of his biography as far as NASA is concerned and it may even hold the key to his vision of the future for NASA. In 2007 while working for defense contractor Wylie Laboratories on aircraft instrumentation systems, [h]e also became involved in a speculative Rocket Racing League. The idea was to race rocket planes in a setup patterned after the NASCAR stock car racing circuit. One demonstration run was made in 2010, but nothing else came of the league.

Sadly, Bridenstine is just one of Trump’s “best” people, the horrible multitudes supposedly working away in the federal government to MAGA: Make America Greedy  — er, “Great”  —  Again. And nothing says greatness to the entire world more than commercializing our space program for “a little cash.”

Big business: sugary CBD-infused delivery systems

I haven’t had the stomach to read much in depth news for the last few days but found this sort of refreshing pause. Coca-Cola Corporation is in talks with a Canadian company, Aurora Cannabis Inc. about marketing an infused drink of some kind.

(Reuters) – Coca-Cola Co (KO.N) is closely watching the fast-growing marijuana drinks market for a possible entry that would expand the world’s largest soft drink maker’s ambitions further away from sugary sodas. sodapot

Coca-Cola announced its interest in a statement on Monday, responding to a report from BNN Bloomberg that said it was in talks with Canada’s Aurora Cannabis Inc (ACB.TO) to develop drinks infused with cannabidiol (CBD), the non-psychoactive chemical found in marijuana.

Coke would join a rush by major alcohol makers and a cigarette company to test the cannabis market and find partners ahead of the Oct. 17 launch of legal recreational marijuana in Canada.

Coke and Aurora, in separate statements, each said they were interested in cannabidiol-infused beverages but would not comment on any specifics or talks. Aurora’s stock soared 17 percent, while Coke’s edged up slightly.

Coke may be coming full circle back to its 1880’s “medicinal” roots. According to Snopes.com Coke really did — at least early on — have some coke, cocaine in it. Coca-Cola was named back in 1885 for its two “medicinal” ingredients: extract of coca leaves and kola nuts. Just how much cocaine was originally in the formulation is hard to determine, but the drink undeniably contained some cocaine in its early days.

It’s probably worth wondering if Keurig Green Mountain Coffee Roasters (sort of a Vermont corporation) to see if they too are looking into cannabidiol-infused beverages. In 2014 it was partnered with Coke but jettisoned that relationship in 2015. KGMCR is now partnered with Dr. Pepper brand sugar-laden drinks. I suppose corporate cannabis soda could be just what Dr. Pepper ordered for Green Mountain Coffee.

Cannabidiol, of course, doesn’t produce a high. No widespread word on whether it gives users the munchies, although some sources say … maybe. If so, how convenient to imbibe the medicinal compound in a hunger-reducing sugary drink — no brownies required.

“An historic day”: U.S. super-yacht owners rejoice at last

At last — thanks to Trump and the US Congress — super-yacht owners can rejoice!

While deadlines for re-uniting refugee-immigrant children with their parents continue to be missed and unfinished business piles up in the US Congress, Republicans in Congress still manage to serve up some goodies to a certain type of constituent:  one-percenters. Tucked away in the John S. McCain Defense Authorization Act of 2019 that President Trump signed on August 13th was the decidedly non-defense provision “adjusting” shipping registration regulations for the benefit of super-yacht owners.

Super Yacht News reports: On 13 August, 2018, Donald Trump, president of the United States (US), signed off on a piece of legislation that would make it possible for yachts over 300gt [gross tons] to fly an American flag and register their yachts in the US.superyacht

Super yachts are essentially a kind of ocean-going tribute to worldwide income inequality. For example, the Cayman Island-flagged Octopus, owned by Microsoft co-founder Paul Allen, is 414-feet long (and well over 300 gt at 9,932 gt) and has 41 suites, a pool, two helicopters, a basketball court, and a recording studio.

Until the new provision takes effect, vessels exceeding 300 gross tons (gt) were required to meet commercial operational standards, or they could not register as an American vessel — nor fly an American flag. Until a new code specifically for large yachts is ready in 2020, yachts of this size can now fly the US flag under the law Trump signed. Exemptions were available, but according to Super Yacht News, obtaining them was “both expensive and arduous” for the mega-wealthy yacht owners. Maybe now, with these changes, Trump’s Secretary of Education Betsy DeVoss can get her family to change the flag on their Cayman Island-registered 164-foot yacht, The Seaquest.

There is no doubt the one percenters didn’t beg and cajole very hard for this special legislative treat: only after a ten-year slog of lobbying and targeting members in congress  did the U.S. Super Yacht Association (USSA) finally succeed.

In 2014 the USSA hoped to ease certain US Customs and Border Protection (CBP) “small vessel” cruising regulations that require personally reporting in to customs and border authorities while in U.S. waters. The mega-rich yacht owners  want to avoid regulations that may cramp their privileged lifestyle. US super-yacht owners will be able to fly an American flag — now that the flag also proves convenient in helping them avoid border-patrol and customs scrutiny. Notice that USSA president Kitty McGowan calls the new law the “icing on the cake.”

The recent favorable legislation, according to McGowan, was made possible in large part by lobbying efforts of large yacht owner Tilman J. Fertitta of Texas. Fertitta, for those who may not know, is star of the TV show Billion Dollar Buyer, and sole owner of Landry’s Restaurants and the Houston Rockets.He is also a longtime  fan of President Trump and thinks Donald is doing a great job.

Quoted in gcaptain.com, Fertitta remarked: “For at least a half century, ridiculous regulations prohibited American citizens from displaying their patriotism by flying an American flag on their yacht. […] Thank you to all those that made this possible and to President Trump for eliminating over 50 years of bureaucratic red tape. This is truly an historic day for American yacht owners and the yachting industry.”  The country — canoeists, rowboaters, lobster harvesters, shrimpers, sailors, and pleasure- and working-boat owners of all kinds and sizes (not to mention the vast majority of inland and coastal non-boat owners) — can breath a sigh of relief  for Fertitta and his wealthy buddies that the super yacht owners are free at last from red tape. Now what say Congress do something positive about Medicare for all ?

Say what you will about Trump and his GOP-controlled Congress, even though immigration reform remains unresolved, gun legislation and almost everything else meaningful seems to languish by design, they always find time to serve up thoughtful little treats to their one percenters.

And for the rest of us?  well maybe …yachtjobzz

ICE and CoreCivic’s bottom line: when the money goes away, so does CoreCivic

CoreCivic private prison corporation runs eight detention and immigration centers under contract with U.S. Immigration and Customs Enforcement (ICE). On Monday demonstrators targeted CoreCivic’s Nashville, Tennessee headquarters. [See Vermont CoreCivic connection below*.]

TheHill.com: Police in Nashville, Tenn., arrested 19 people on Monday after they blocked the entrance of the headquarters of a private prison company that operates migrant detention centers.

Demonstrators from the No Exceptions Prison Collective arrived around 5 a.m. to protest at the headquarters of CoreCivic, which operates eight detention centers for U.S. Immigration and Customs Enforcement (ICE).

The activists linked their arms through heavy barrels, and one protester suspended themselves 25-feet in the air on a swing-like seat using a large stand.

Folks of a certain age may recall how in 1967 DOW Chemical, the manufacturer of napalm for U.S. military use in Viet Nam, was targeted on college campus by students and activists. In  demonstrations — sit-ins and marches — they called for an end to the presence of that company’s job recruiters on campus and for universities to cease investing in DOW Chemical stocks. Organizers at Harvard blockaded a Dow recruiter in an office for 7 hours, and similar such stories were commonplace on campuses across the US. Protests did not stop investment or campus recruitment — but perhaps weary of disruptions and bad PR, DOW ended production of napalm in 1969.

SPLC corecivic

In the present frenzied political environment, it impossible to predict what effect the “abolish ICE” movement may have toward the goal of curtailing widespread DHS immigration abuses at private prisons. But it is worth remembering the for-profit nature of these prison corporations. If/when their sacred bottom line suffers, CoreCivic’s ultimate loyalty is only to profits for shareholders and not to ICE or to the administration whose policies it carries out.

The question is, would abolishing ICE just funnel more money to private operators like CoreCivic? Or would it have a strong enough negative affect on the company’s bottom line to prompt its recreation in a different line of work? And if not, what actions would affect CoreCivic’s bottom line?

*Vermont CoreCivic connection: After being lobbied last year by CoreCivic officials Governor Scott and his administration were reportedly considering partnering with the prison business to build a 925-bed prison in Vermont, specifically in Franklin County. That project is currently reported to be on hold after negative feedback from the public and virtually every public official and legislator, regardless of political affiliation.

My gripe du jour.

Have you tried to get a truly cheap cellphone option lately? I have, and now, for my sins, I am about to go incommunicado.

First of all, let me just say that  I am not a Luddiite.  I just don’t believe in paying for bells and whistles when all I need is a portable pay phone.

For those of you too young to remember life before cell phones, a “pay phone” was a wonderful convenience  that was available on virtually every second or third street corner.

Phone booths were almost as ubiquitous as public washrooms, and, in some of the seamier parts of town may have actually been easier to find (alas!)

Anyway, I have a computer.  I sit at that computer for far too many hours in a day so I have no interest in consulting a miniature version of it when, finally, I am out and about.  I also have no interest in texting.  If I had wanted to type a note, I’d have sent it from my email while I was sitting at my desk.

When I am away from my desk, I only want a phone in order to reach out for help or be reachable in an emergency.  If I am at a store, I might phone my husband to ask if he’s thought of anything he needs.  That’s just about it.

I have a sturdy flip-phone I bought years ago, that will probably outlive me. I’m not interested in moving “up” to a “smart” phone.  I have a Garmin for navigational help and I prefer to remain the “smart” component in my telecommunications universe while I am on the road.

So I am looking for the cheapest cellphone option I can find, and that is not easy.

First, I visited our local AT&T office and ended my existing line on our business plan.  When my husband and I finally got around to reviewing our wireless service, we discovered to our horror that we were paying a fortune to maintain my dedicated cell phone line.  

( Why we are still with AT&T is a long story that involves my husband’s service while he is in Canada for a couple of days every week.  When AT&T took over Verizon’s Vermont customers some years ago, they grandfathered his special plan that kept the cost of international calls to a minimum.)

Having not resolved my phone issues by myself, I asked my son to see what he could do.  He returned from the AT&T office with the good news that I could bring my flip-phone in, have them install a new sim card and assign me a new phone number, and walk away with 40 minutes of talk-time, good for twelve months, for a one-time payment of $10.  If I used additional minutes over the course of the year, I would have to pay $10. again to re-up my minutes, but I am unlikely to be on my cell phone for even twenty minutes over the course of  a single year.

Sounded good to me, so I hied on down to AT&T on a Saturday afternoon and joined the interminable queue waiting for service.  When I had the opportunity to explain what I wanted, I was told that no such plan exists and that the best I could do was to pay $100. to have my phone enabled for 400 minutes which would be good for a year.  If I didn’t use up my minutes within the year, they could only be added to my next year’s available after I paid another $100. for an additional 400 minutes.   Not a good deal for someone who couldn’t use even 100 minutes in a year of cell phone service, but I was growing weary of the battle and inclined to cave.

That’s when my husband got into the act.  He phoned At&T and the person he spoke with told him there was no such thing as either the $10. a year plan my son had been pitched or the $100. a year deal my local AT&T had offered me.

This consumer melodrama came immediately on the heels of our last misleading encounter with AT&T.  

A couple of months ago, when my husband was first tackling the crazy-high cost of our cell service, he spoke with an AT&T representative who promised that he could reduce our overall charges with some fast-talking plan magic.  At the same time, he told my husband that he could have a brand new tablet added to the service for free.  Never one to refuse a freebie, even though he could see no earthly need to have a tablet, my husband agreed.  When the confirmation email arrived, it included a bill for the first of ten monthly payments for that supposedly “free” tablet.  We immediately contacted AT& T and told them to cancel the whole thing.  They reluctantly agreed and sent a return label for the tablet which hadn’t even arrived yet.

After that, it took us a full billing cycle to get the tablet charges and extra phone number removed from our bill.  We wasted literally days on the phone, being placed on hold, passed from person to person, referred to the wrong department and repeating the whole thing again and again until we were utterly confused and exhausted…all for a “free” tablet that my husband had never even asked for.

Then, of course, began the aforementioned adventure of trying to get a simple emergency cell phone for me.  After searching through other available providers, I am forced to conclude that AT&T may be no worse than the others.  This is progress?

I resent the fact that you can get a cell phone to take your picture, give you directions, play music, browse the internet, do your shopping and wake you from your nap; but you’ll pay through the nose for one that allows you to do nothing more than place phone calls the way we all used to do for a quarter a call at the corner payphone.

Now, get off of my lawn!

Von Trapp EB-5 Brewery’s small beer job creation

The headline says von Trapp Brewery so far unaffected by closure of Vermont EB-5 center but how about 900 jobs they promised?VonTEB5beer

Last week the United States Immigration Customs Service (USCIS) handed down their decision to shut down and terminate the Vermont EB-5 Regional Center, which is run by the Vermont Agency of Commerce and Community Development (ACCD). The closure comes as a direct result of the EB-5 Jay Peak Ponzi scheme. Bill Stenger and Ariel Quiros defrauded millions of foreign investors while under the ACCD’s and Vermont EB-5 Regional Center’s oversight.

But there are other Vermont businesses participating in the Regional Center’s EB-5 program, and as the Jay Peak dust settles those programs are getting some attention.

The EB-5 program is designed to provide capital investment by foreign investors and stimulate the U.S. economy through job creation. Approved participating businesses present the Regional Center with plans on how they would create a certain number of new jobs with their foreign investor funds — but as with so many other business incentives programs there’s little follow-up verifying actual results.

From Vtdigger.com’s article as published in The Stowe Reporter — von Trapp’s hometown paper:

Sam von Trapp said he’s seen no indication that his company will need to refund any investors.

He doesn’t know how many of those investors have received their permanent resident status, but says most of them have achieved “early levels of approval.”

“We’ve had an effective project, and our people are not at risk, but it is going to be a distraction and an annoyance if we indeed have to move to a different regional center,” von Trapp said.

It may all feel like a “distraction” for von Trapp, but for immigrant investors it is quite a blow. They trusted the Vermont Regional Center, investing millions expecting they’d actually get green cards as promised; now many are out of luck along with losing their investments.

And the promised new local job creation used to create positive buzz and sell EB-5 projects?  The von Trapp Family lodge pitched EB-5 jobs angle as Jay Peak and other businesses did. And like them the von Trapp organization made pretty BIG promises about new job creation.

The Wall Street Journal reported: In [2013] offering materials, Mr. von Trapp’s economist asserts the finished project will not only preserve 200 jobs at the lodge, but also will create 904 new jobs within three years – 66 jobs at the Trapp Lager brewery and restaurant, and the rest “indirect” jobs as the capital spending ripples through the economy.[added emphasis]

Following the 2008 recession The von Trapp Family lodge qualified as a “troubled business” under EB-5 regulations. The reasoning was that some investor funding could be used to help maintain existing jobs, not spent on creating new ones.

Stowe Reporter: von Trapp Brewing and Bierhall used investments from 40 immigrant investors.

von Trapp wouldn’t say how much funding was used from those immigrant investors, though a 2013 Wall Street Journal article states Johannes von Trapp had a goal to raise $22 million from 44 investors by June of that year.

By March 2013, the brewery had raised $2.5 million from five immigrant investors, according to the Journal.

More than 50 jobs were created during construction and operation of the brewery and the Bierhall, von Trapp said, although only brewery jobs count toward the green-card program.

Rather than sending “ripples through the economy” as von Trapp promised the EB-5 funded brewery comes up flat on job creation with something less than fifty jobs — and that hardly rates even a good belch. Calling Doug Hoffer …

Think!Vermont still in its little box: “The problem with Vermont’s bright idea”

Jeff Yang, a columnist for the Wall Street Journal, has an interesting look in a CNN commentary at the state’s pay people to move to Vermont & work remotely program.*  The program, designed to entice people to Vermont and increase the workforce, was described by Governor Scott as an example of thinking “outside the box.” In his CNN piece, Yang describes what a real “outside-the-box” Vermont  program might look like. Hint: it’s much more than what we’re doing now layers of glossy websites, and flash & bang headlines.

outothebox

From  CNN: What’s ironic is how inside the box its “outside-the-box” thinking really is. Because while Vermont could be taking this moment to bring new diversity to a state that’s the second-whitest in the United States, it’s instead investing in initiatives that could easily end up maintaining the state’s culturally monolithic status. If Vermont had aimed this policy at explicitly encouraging new Americans to migrate to the state (the policy does not), it would be redressing a significant shortfall in the state’s demographics.

[…]  The fact is, as Vermont, and America as a whole, ages and sees its workforce decline, immigration is unquestionably a critical part of the solution. But Vermont is paying American workers to move to its small towns and rolling hills, even as millions of people are willing to do just about anything to move to the United States. Some are desperately fleeing horrific conditions in their native countries.

The difficulties of taking on such a task, Yang, says are great but not impossible. And although, he says correctly, Vermont is a welcoming state, he notes the mostly unsuccessful efforts to relocate Syrian refugees to his city by the former Mayor of Rutland in 2016. As a candidate that same year, Governor Scott called for a pause in the effort over what he called his “concerns” about security vetting of those new immigrants. Under criticism for his less than convincing argument, he softened his tone but remained committed to aggressive vetting of those particular immigrants.

Yang suggests that funds could instead be directed to encourage companies to hire immigrants and set up partnerships with universities to assist newcomers to build the state population, workforce, and economy.

If Vermont really wants to boost its economy while attracting young professionals and technology entrepreneurship to the state here’s a radical idea: It should use the funds it has set aside to line the pockets of mobile American workers and put them instead toward becoming a better destination for immigrants from Africa, Latin America, Asia, and the Middle East.

Now a program like that would put Think!Vermont way outside the comfortable little box it now lives in.

*Where were the media people who make up the snazzy names like Stay to stay, Think!Vermont etc. when Scott launched the get-paid-to-move-to-Vermont-work-remotely program? Maybe they ran out of budget to pay out-of-state pr-hype firms …