What is Plunder? Frederic
Bastiat, in his book “The Law” said, “When a portion of wealth passes out of
the hands of him who has acquired it, without his consent, and without
compensation, to him who has not created it, whether by force or by artifice, I
say that property is violated, that plunder is perpetrated.”
If that is plunder, what is legal plunder? Bastiat explains that ‘Legal Plunder’ occurs
when the ‘law’ is used as an instrument of plunder! Legal plunder is the worst kind of plunder because
the plunder (ie wealth passing out of your hands without your consent or
compensation) is enforced by governmental law.
Bastiat asserts legal plunder occurs for 2 reasons “Naked Greed” or
“misguided philanthropy”.
The words “Legal Plunder” are offensive and I apologize for
using these terms in the same sentence in speaking of the City of Mesa. But I ask, has Legal Plunder occurred at the
City of Mesa?
I will present 3 different situations where legal plunder
may or may not have occurred. You
decide.
EXAMPLE 1: PMGAA
The Phoenix Mesa Gateway Airport Authority (PMGAA) was
created in 1993 in partnership with Apache Junction, Gila River Indian
Community, Gilbert, Mesa, Phoenix and Town of Queen Creek.
Between 1993 and January 2015, the Member agencies expended
over $85 million predominately for Airport operations. Was that money a gift or loan?
The City of Mesa Council report for the
Council meeting of 12 January 2015 says.
“PMGAA records all Member
agencies contributions as loans payable.”
At the Council meeting of 12 January 2015 Mayor Giles said that “the
airport is now at a point where it is generating revenue---.” Regardless, the City Council authorized the
City Manager to amend the agreement with PMGAA.
“-------- TO OFFICALLY
RECHARACTERIZE THE MEMBERS LOANS TO PMGAA AS CUMULATIVE APPROPRIATIONS.”
By the clever use of language, the $52.4 million the City of
Mesa loaned to PMGAA was swept away and forgiven. No interest or principal has
been repaid.
17 January 2015, the Mesa Tribune carried an article written
by Trevor Godfrey titled “Mesa Forgives Loans to Gateway” and provided this
information:
“With interest, the
amount Gateway would have repaid to Mesa totaled more than $70 million, and the
total amount to all partners over $200 million”.
The City of Mesa continues to contribute (gift) well over $1
million per year to PMGAA. It comes from
the wallet of non-Mesa residents without their consent and given to a special
interest group (private companies) under the guise of ‘Law’.
Is it ‘Legal Plunder’? You
decide:
EXAMPLE 2: $1 LAND
SALE
12/12/2016 Item 5-C on the City of Mesa Council Agenda
authorized the City Manager to sign an agreement on behalf of the City of Mesa
with a private developer to sell a City owned parcel of land for $1 provided he
achieved approval for Federal subsidizing of a 5-story, 71 unit low income housing project. The land was appraised for $380,591.
The agenda item was approved over the Mayor’s objection
because he felt adequate public notice had not been given nor sufficient time given
to secure bids from as many developers as possible.
Would you consider it plunder if I sold a parcel of
land you owned that was worth a considerable amount of money for
$1? If I cannot do that to you, is it
legal plunder when the City Council sells land that we own as citizens for $1? Is
it possible this council action is an example of ‘Naked Greed’ or misguided
philantrophy?
How many police and fire personnel could we have hired for
$380,591?
EXAMPLE 3: SALES TAX
INCREASE FOR EDUCATION
The last example I present for consideration is the determination
of the City to raise taxes to build an ASU campus. Here are some quotes from a 29 January 2017
East Valley Tribune article written by Jim Walsh:
Giles
lamented the fact that he was unsuccessful “increasing the sales tax
rate---creating $38 million in new revenue.”
While Mesa voters rejected a sales tax initiative that would have
bolstered public safety and built an ASU campus
downtown, Giles is re-doubling his efforts on both fronts.
In Giles opinion, Mesa’s high level of poverty is tied directly to
a lower level of higher educational attainments.
“The best answer to poverty is education,” Giles said. From my
prospective, ASU has never been off the plate. We are anxious to have more ASU
in Mesa.”
In my opinion, the failure of Question 1 to pass last
November was because the majority of voters living in Mesa sent the
message---We do not want a sales tax increase to build an ASU Campus! Free
college education is not “Free”! It is
amazing how generous government can be with someone else’s money.
The estimated tax income generated if the sales tax
(Question 1) were to have passed would have been $38 million per year. But $38 million per year is not created out
of thin air! It comes from the disposable
income of Mesa residents. Since they
will pay a $38 million increase in cost of products, they will by default pay
more for less! Is it legal plunder to
take from families who struggle month to month to pay their utilities and to put
food on the table to build more buildings down town that primarily benefit the
builders, downtown merchants and big business (ASU)?
Has Legal Plunder occurred at the City of Mesa? You decide.
Will it occur in the future? You
decide!
