$14 Million in Corporate Welfare to Northrop-Grumman to Cut Virginia Jobs?


    Conservative blogger Norman Leahy of Tertium Quids excoriates Bob McDonnell for spending $12-$14 million in corporate welfare to lure Northrop Grumman’s headquarters to the Commonwealth, then watching as the company “has been shedding jobs — 330 at Fort Eustis and at least 200 more at its ship building unit in Newport News.”

    As Norm concludes, “It’s enough to make me wonder if Pyrrhus of Epirus is in charge of the state’s economic development efforts…”  Yeah, that’s the guy who inspired the phrase “Pyrrhic victory – “a victory with devastating cost to the victor; it carries the implication that another such victory will ultimately cause defeat.” Message to Bob “for jobs” McDonnell — please no more “victories” for Virginia like the Northrop-Grumman one, we can’t afford any more of those.

    • Dan Sullivan

      Attract a little more economic meat and do a little less feather preening.

    • Bumble Bee

      In years past we did not do this, bribing companies to come here.  It was not until George Allen, the paragon of intellect, became governor that we started to do this and he got burned at it.  It is stupid.  If we don’t have the infrastructure and and educated work force they will not come anyway.  But to bribe them so they can screw us on the next turn of the business cycle is absolutely mindless. Corporate welfare and bribes are not the answer.  The corporations and their fellow traveler politicians are the problem.  

    • gene magruder

      As a employee of Northrop Grumman Newport News, on the blue collar side I would just like to inform the readers of facts they might not know. Would you run your business building boats with a 12,000 white collar force and only an 8500 blue collar force? The company is so overloaded with overhead right now I would anticipate even more job losses soon on the non-production side of the workforce. The mentality at our plant is that paperwork makes more money than building boats and this is true in some senses. So the company has many individuals that just sit all day and write paperwork contributing little to the product. Around our shipyard we have complained to upper management that we need more people on the actual production side because the workforce is aging and the avg age is close to 50. they are not listening and actually in the plant now you can see that Northrop Grumman just wants to sell and get out of ownership. Why is it that I again sense the blue collar workers and our union workforce is once again about to be screwed and I don’t believe our Governor or our legislators federal or state really give a damn?

    • Cool_Arrow

      Wasn’t NG supposed to move to Ballston? We shouldnt’ be giving them incentives to move their corporate HQ they should be moving it because it would be good for their business (which I do believe is the case).

      The amount of waste that is in government contracting and to a large extent defense contracting is sickening. As a finance guy just looking at all of these overhead costs and these contracts that they get just to get is maddening and I really wish we could save a lot of money on these. Just need the political will for this which is obviously easier said then done.