Cutter wrote on Jun 4, 2012, 14:49:

Ruffiana wrote on Jun 4, 2012, 13:11:
Yes, except the vast majority of the money lent to 38 studios goes right back into the local economy as they use it to pay interest on said loans, taxes, rent, utilities, and payroll to their employees (who in turn turn around and put their share back into the local economy through taxes, rent, utilities, food, gas, clothing, etc etc.)

It's not like this money just vanished into the ether or ended up in a foreign bank account.

That's not true at all. All your doing is redistributing tax money in an unfair manner. And given that the taxpayers of RI are now left holding the bag it just means a bunch of people got a free ride for a year and few of them made out like bandits. 38/BHG were government employees for all intents and purposes. And though I keep asking, no one seems to know or wants to admit to how many actual jobs were created for actual residents of RI. From everything I can gather it wasn't much. The fact remains that most people were opposed to the deal in the first place and for good reason. You don't have to be a rocket surgeon to figure out a company with no track record involved in a risky venture for a lot of money probably won't bode well in the end.

Now, how they taken that money and at least risked it on small businesses - the real jobs creator - they would have seen some failure but they would have seen a lot more success and it also guarentees local jobs for local people. As an ex-small business owner myself - who will be back in biz for himself again one day soon - I get incensed when the government tells me they have't got dime one for me to create immediate local jobs for a fraction of the cost of some big business who creates much less employment overall and gives back a lot less to the community because of their tax breaks, etc. For 1% of that loan I could start a business employing 5 people tomorrow - just to start.