Despite differences, we can agree on some aspects of government’s role
It’s easy to imagine our current politics as the most polarized in the nation’s history.
And yet despite the differences - real and imagined - we are far more aligned politically than we were during George Washington’s administration.
Alexander Hamilton, the first Treasury secretary, envisioned a strong federal government creating the conditions for a vigorous industrial economy. Thomas Jefferson, the first secretary of state, conceived of a weak central government presiding over a nation of small farmers.
Jefferson, in a sense, won the battle - his party triumphed in future elections - but Hamilton won the war.
We live in an America far closer to Hamilton’s vision than Jefferson’s.
But the debate about government’s role continues, as it should, and it recently played out locally at a meeting of the Sussex County Council.
Diane Laird, coordinator for the state’s Downtown Delaware program, provided county council with an overview of a plan to help revitalize town centers. The statewide $7 million effort begins with one municipality in each county, with Seaford chosen as the first town in Sussex.
(This is the same program that recently stirred some controversy in Milton, which didn’t do all that was required to apply. Laird, however, assured Councilwoman Joan Deaver, D-District 3, whose district includes Milton, that the program was intended to be long-term and that the town would be able to re-apply.)
Seaford, once famous as the Nylon Capital of the World, never completely recovered from DuPont’s departure in 2004. According to Laird, many downtown buildings remain substandard, unsuitable for new business recruitment.
“There’s a lot of vacancy in downtown Seaford,” Laird said.
The idea behind the Downtown Development Districts is to provide financial incentive for owners to fix up these buildings. Say, for example, a building required $100,000 in repairs and modernization. The owner would be required to put up the first $25,000 to qualify. Of the remaining $75,000, the state would pay for 20 percent of the improvements, or $15,000.
Councilman Sam Wilson, R-District 2, didn’t like the sound of that.
“So they’re not really making enough money at this point,” Wilson said sharply. “We’re going to come along and give them some state money … and say we’re going to help you get in business.”
It was the argument that goes back to the beginning of the Republic: What is the government’s role?
Laird explained the idea was to revitalize buildings that could then attract businesses.
That didn’t satisfy Wilson. “They’re not able to survive on their own. Is that correct?” he asked.
Laird began by replying that real estate could be devalued over time or by the economy, but Wilson interrupted, “Where’s this money come from?”
Wilson, of course, knew the answer but wanted to make a point.
“It’s $7 million from the Legislature,” Laird said.
That wasn’t the answer Wilson was looking for. “So it comes from other taxpayers. Has to come from taxpayers, because the government doesn’t make money, correct?”
At this point, Wilson was speaking so fast Laird had to ask him to slow down.
He continued, “So they’re taking money from the private enterprise, from other people, and giving it to another private organization that cannot make it on its own.”
Wilson’s right, of course. That’s the intent of the program, to provide private developers with an incentive - a gift, not a loan - to fix up their buildings. How’s that beneficial to the average taxpayer? Wilson demanded.
That’s a fair question, but Laird had a good answer.
“If a building is worth $150,000 and it needs $250,000 in improvements, they’re never going to make a change,” Laird said. “And then we as a state suffer from poor downtowns.”
That’s the issue in a nutshell. In some cases, if government doesn’t step in, no one else will.
Sometimes, of course, government investments don’t pan out. Wilson mentioned the money the state poured into an upstate auto-manufacturing venture. Failures like that spark justifiable outrage.
But despite the failures, we as Delawareans agree more than we disagree about the government’s role in the economy. The Downtown Development District program administered by Laird, after all, passed the state Legislature unanimously.
And Wilson’s fellow Republican, the newly elected District 5 Councilman Robert Arlett, seemed positively thrilled that Seaford was chosen for the new program.
Arlett acknowledged that the money for programs such as Downtown Development District comes from the private sector, but said that government helps creates the environment for business to grow.
“I’m so pleased we are putting some focus on Sussex County’s economic development,” Arlett said, “because we must do a better job and create private sector jobs to help our residents.” I think most of us can agree on that.