Jessup car loan from Rancho Mirage smells bad



“You will like this guy, he is a good guy, he is one of us.”

To be sure, using an old phrase from the movie Nicefellas, I am not in any way slandering the owners of Jessup dealerships. I’m sure they are good people.

But you have to ask yourself why the mayor’s office of Rancho Mirage threw away the book of ethics and does back flips and springs to cram into the controversial US $ 6 million loan secured by taxpayers for an 83-year-old car dealership? Because it’s for someone they like?

The loan just doesn’t pass the odor test. Why special services?

Is it because the people in Jessup are friends? Campaigners? Where do our elected officials and decision makers buy and service their vehicles, you have to ask? When the government tries to take unprecedented action, all of these questions are fair game.

You also have to ask, when did the so-called “small government conservatives” become advocates of taxpayer-financed loans for private businesses? Isn’t that exactly the kind of behavior they usually call “socialism”?

In fact, this unusual loan is worse than socialism – here, if the dealership succeeds, Jessup can make tons of money. But if this fails, the taxpayer remains in the hands. How is that a good deal?

And when did we turn into capitalism like “I win on tails, I win on tails”? The capitalism I have studied is risky. Again, why an exception for this business?

You also have to ask, if Jessup is 83 and their finances and business plan are in order, why would they even need a government loan at all? Why does the bank or investor not guarantee their construction project? Why should taxpayers provide insurance?

I’m a good guy. I have a couple of ideas. Where is my loan? Why not me? And that’s just the point.

Nice deals for “good people” were made with Watergate. We cannot and should not make exceptions for people we like just because we like them. Government loans are not candy to give to friends and family. Taxpayer dollars are hard earned. They should be treated with respect.

Anthony Coates of Indian Wells is an economist and investment consultant who managed government funds and provided municipal underwriting.


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