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June 16, 2011

O'Malley Asia trip: Trade mission or party junket?

Last week Drew Greenblatt of Marlin Steel Wire sent me some pix and videos from Gov. Martin O'Malley's trade trip to Asia. Yesterday he followed up to make sure I got them. As I explained in response, people like me take a dim view of politicians galavanting around the globe at taxpayer expense.

Come on, I basically told him. These things are just entertainment junkets for everybody involved. Wouldn't these deals have happened even without the governor's personal visit? Here is Greenblatt's response, which was detailed and persuasive enough that I thought it worth passing on:

I understand what you are saying about politicians and I am sure that occurs in many cases however, not on this trip. Because the Governor was there, I had appointments with [I removed this name because Greenblatt said he signed a confidentialty deal with the company -- JH], GM Korea, Borg Warner Korea, Visteon Korea and Japanese companies that make parts for Komatsu (and others).

I would not have gotten these “ins” if the Governor did not open the door for me. His prestige enabled me to get appointments. It is up to me to close now (I will – you know me). Then I will get orders and hire more Baltimore City Unemployed steel workers. This was not a junket. He worked hard. He worked early in the am till late at night.

For example we had an event at 930pm (start time) for the American/Korean Women’s Chamber of Commerce. At that event, I met the owner of the company that does 30% of all the steel work for the GM Korea plant (they make 400k cars a year). I would never have met her if it was not for this program. She would not have come if the Governor was not there. I respect your views (I am very fiscally conservative), but they do not match with this trade mission.

Yes, I understand that Drew has multiple reasons to butter up the governor. But his response and the details are interesting.
Posted by Jay Hancock at 6:09 AM | | Comments (7)
        

Comments

If you have to ask I think you already know the answer, regardless the spin of those with business interests.

I am of divided opinion on this as well.

It is definitely part of my nature to assume that things like this are just wastes of money; paid vacations for those lucky enough to participate.

Still, it's fairly common in the private business world as well to meet with far-away clients in person.

There may be a certain amount of debauchery that accompanies these trips, but that doesn't mean they are all wastes of time and money.

C'mon, Everyone, let's get realistic. Guys: when you asked the girl whom you wanted to become your fiancee, to marry you, did you do it on the phone or in person? Gals: when then-boyfriend asked you to marry him, were you satisfied if he did it over the phone, or did you want him to come and ask you in person? Persuasion is personal, not something one may exert from afar.

But why is an emissary from the government doing the persuading? Greenblatt is clearly pro-business, specifically pro-Marlin Steel, at the expense of being pro-market, or any business who is not big enough to curry this level of favoritism from the governor.

Government privilege that is doled out to big business has the exact same welfare effect as regressive taxation. To that end it has more in common with the pre-1776 world, than the post 1776 world.

Drew Greenblatt only knows one approach "hard work". Drew stayed in touch with me via email and text, during his business meetings in Asia. He is a great example of what small manufacturers need to do to get into the export game. A win for all.

Shame on a system which brainwashes people like Drew Greenblatt into thinking they cannot succeed without the help of political kings and queens.

Sad

Actually, Carole, what is sad is that they may not be able to succeed without government aid these days, thanks to all the taxes and regulations imposed on businesses in MD.

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About Jay Hancock
Jay Hancock has been a financial columnist for The Baltimore Sun since 2001. He has also been The Baltimore Sun's diplomatic correspondent in Washington and its chief economics writer. Before moving to Baltimore in 1994 he worked for The Virginian-Pilot of Norfolk and The Daily Press of Newport News.

His columns appear Tuesdays and Sundays.
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