“The Cost of Growth” – Part IV

Finally, we come to the last metric the LEDC brags about to show they are worth the $400,000 per year they skim from the taxpayers: new businesses.

From the Dispatch puff piece: “City Secretary Becky Sims noted 42 new businesses were established in Lampasas between 2018 and 2021. Twenty-four of those were established between 2020 and 2021

Wow! Sounds impressive! I love new businesses too. I’m not some old curmudgeon who only wants a bunch of fast-food chains here and hates change. I loved it when Lampasas Beer Market opened. Loved it when Cherry on Top opened. Those are private citizens risking their own ass to bring the town something different.

But is that “42 new businesses” accurate? Well, kinda but not really. I got my hands on the list. You can download the list yourself:

The funniest part of this list is that I don’t see “Wool & Vine” on there. LOL. Nor should it be. A hobby lemonade stand that is only open a few days a week and employs nobody doesn’t really count in my book. Maybe the City secretly feels the same.

Then we get to the huge chains: Whataburger, Dominos Pizza, Golden Chik, Burger King, Cefco, etc. Are they nice to have and do they employ people? Yup. Did they come here because we have a “Lampasas Economic Development Corp” and Mandy Walsh to make it happen? Nope. Those companies know exactly when to stick a store into a town based on demographics, traffic patterns, median income, etc. It has ZERO to do with the LEDC or Mandy Walsh and her clipboard.

Many “new businesses” on the list were simply taking the place of something that closed. Mandy and the LEDC like to crow about the NEW business, but never mention all the ones that close: Mamma Jeans, Toupsies, Rutlands, Chinese Buffet, etc, etc.

So if Toupsies closes but Bill’s opens in its place, is that a “new business”? Bella Italia replacing whatever was there before that (I forget)? Moonie’s replacing Gillens? Technically it is a “new” business – but another business closed before it. Net business creation is zero in that case.

Bottom line: new businesses are great – as long as Mandy and the LEDC aren’t subsidizing them with free stuff. All that does is (once again) “fill the pool” by pumping water from the deep end into the shallow end.

Actually, it’s even worse than that. Mandy Walsh takes over 100,000 cups of water out of that pool for herself (salary, retirement benefits, health insurance benefits, travel, conferences, etc) – and the LEDC takes over 300,000 cups of water out too. Just like the feds, they take your money, put some in their pockets, and then decide how to dole out the rest – all the while posturing as heroes and do-gooders with YOUR money!

It would seriously be more efficient to skim those $450,000 tax dollars every year, put every business name in a hat, pull twenty names out randomly and hand them each $22,000. That’s how ridiculous the current system is.

Disband the LEDC. Eliminate the “Economic Director” position. Let people keep their money and let businesses sink or swim in the free market.