New facility in Secaucus, courtesy of another big corporate tax break

Goya began the consolidation of its distribution and headquarters facilities in Secaucus with a groundbreaking today on its 615,000-square-foot facility.

The warehouse is expected to cost $127 million and house between 491 jobs (and just nine new ones, based on its application to the state Economic Development Authority for tax breaks) and 580 jobs (of which 80 would be new, according to company officials today).

The state awarded $82 million in tax breaks, which translates into about $10 million per new job (based on the application) or $1 million per new job (Goya statement).

New Jersey Policy Perspective has repeatedly criticized the use of tax breaks to attract and retain jobs as bad economic policy, because the tax losses far outweigh the gains in employment.

Gov. Christie is having nothing of it. Speaking during today’s groundbreaking he said:

“That’s not what it’s about. It’s not just those 500 jobs. If Goya were to leave the state, it would have a downstream domino effect on a lot of other companies and businesses that do business with Goya because they’re here. It’s just too simplistic to take the number of jobs and divide it into the incentive.”


The middle class always pays

The fix is in — and the middle class pays. That is the point of this column by Richard Parker, from the McClatchy-Tribune news service. The banks and the government — with collusion from both political parties — have created a system in which financial institutions can do what they want without consequences. When the banks and investment firms make bad decisions — which is often — they get bailed out by the government, which means we clean up their mess.

The job numbers in perspective

Today I have a piece on the state job numbers up at NJ Spotlight.

New Jersey Job Numbers Provide Sobering Backdrop to Labor Day

Population growth helps keep unemployment high, while workers who find jobs often must live with pay cuts

Job-seekers are looking for help finding a new job at a time when both the national and state unemployment rates remain at generational highs and population growth has created more job-seekers for each job opening.

While New Jersey has replaced nearly all of the jobs lost during the first few months of the recession, population growth means that the state has about 60,000 more workers than jobs. This has created an employers’ market and is creating a downward pressure on wages, analysts say.

Read on here.

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