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List:       publib
Subject:    Re: [Publib] new article from LJ about LSSI
From:       "Robert L. Balliot" <rballiot () oceanstatelibrarian ! com>
Date:       2010-09-29 12:36:59
Message-ID: FFAA6591461D45238457B81CE445C3B8 () junior
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Ironically and sadly this Pezzanite scheme also appears to contribute to the
city / town / county cash-flow problem that it purports to help.

Local tax-based appropriations spent in a community create the multiplier
effect <http://en.wikipedia.org/wiki/Multiplier_Effect> .  So, if your
library hires local people and they in turn spend their money locally, it
re-circulates in the local economy - leading to additional tax receipts.
There is some evidence of inherent inefficiencies to the multiplier effect,
but if the money leaves the area - it no longer circulates and no longer
creates a taxable revenue stream.

Add to the notion that off-shore corporate accounts cannot be taxed. So,
profits derived from tax based municipal funds may leave not only the local
economy, but the entire country.  In tiny Rhode Island, we see this
constantly.  Where I live, you have to drive through Massachusetts to get to
the capitol of RI - Providence. Mass taxes at a lower rate, so revenues flow
out of the state with RI shoppers looking to 'save' 2%.  RI tries to make up
for shortfalls in receipts by using extremely high property tax rates.

On a national level under the guise of saving a bit of money, we employ the
big box stores that most effectively purchase the cheapest goods from the
cheapest labor. So, we have reduced the money re-circulating in the economy
and continue to force wages down and remove jobs from the local economy.
Stasis under current conditions without intervention would occur when all
economies are in equilibrium - with a few very very wealthy people and the
rest sharing very very little that is left over.

*************************************************
Robert L. Balliot
Skype: RBalliot
Bristol, Rhode Island
http://oceanstatelibrarian.com/contact.htm
*************************************************
________________________________________
From: publib-bounces@webjunction.org [mailto:publib-bounces@webjunction.org]
On Behalf Of Jane Jorgenson
Sent: Tuesday, September 28, 2010 2:47 PM
To: publib
Subject: [Publib] new article from LJ about LSSI

http://www.libraryjournal.com/lj/home/887000-264/lssi_controversy_still_brew
ing_in.html.csp

Key sentence, IMO: "One commenter pointed out that, while Pezzanite
described LSSI as a "family-run company," it is now owned by a private
equity firm."

Jane Jorgenson
MPL
Madison, WI

["winmail.dat" (application/ms-tnef)]

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