And you’re broke if you can’t afford basic services.
And you’re bankrupt if you think that cutting social services for the most vulnerable is acceptable ever, and even more so to buy a stadium for a professional sports team.
But that’s what happened in Washington, DC.
The city bought a home for the billionaire owners of the Nationals (who then refused to pay rent), spending at least $611,000,000 of public money on the stadium. This despite the fact that Theodore Lerner, the managing principal owner of the Washington Nationals has an estimated net worth of $3 billion. (Washington Business Journal/Forbes).
What now? The city’s broke. After buying a stadium for one of the world’s wealthiest men, the residents of Washington, DC are now missing half a billion dollars necessary to operate the city.
The City Council recently refused to raise taxes on those making $350,000 by by less than 1/2% (from 8.5% to 8.9%), electing to keep pulling from those who have little political power to resist.
According to the Examiner, “opponents of the tax increase said it would lead to the 4,000 residents who would be hit with the tax to simply change their primary residences to their second homes in more tax-friendly states.” My former boss Andy Shallal wrote a poignant letter to the Washington Post stating while he wouldn’t be leaving and supports this tax even though he will have to pay it.
This entire article on government funding of stadiums from the Cato Institute is surprisingly worth reading in its entirety:
Stadium advocates have been amazingly successful in taking from the poor and giving to the rich. Raymond Keating, chief economist for the Small Business Survival Committee, estimates that government has poured more than $20 billion (in current dollars) into sports ventures in recent decades.
Yet such facilities once were and continue to be built privately. The only reason more franchise owners decline to construct their own stadiums is because taxpayers so often relieve them of the need to do so.
But there’s no reason to sacrifice the interest of taxpayers to that of sports fans. Stadiums are not a good financial investment. Public finance experts Roger Noll and Andrew Zimbalist concluded: “no recent facility appears to have earned anything approaching a reasonable return on investment and no recent facility has been self-financing in terms of its impact on net tax revenues.”
Don’t let this happen in your city!: Ten Things You Can Do.