Blog Roll
Who's My Legislator?

Virginia Blogs
All Things Education
Augusta Free Press
Crew of 42
Dixie Pig
Greater Greater Washington
Loudoun Progress
Ox Road South Blog
Pilot on Politics" blog
Power for the People
Richmond Sunlight
RVA Politics
Shad Plank
Vivian Paige

Find more about Weather in Arlington, VA
Click for weather forecast

Advanced Search

Northrop Grumman Giveth, Northrop Grumman Taketh Away

by: lowkell

Sat Jul 31, 2010 at 10:12:41 AM EDT

Back in April, we had Bob McDonnell touting Northrop Grumman's decision to move its corporate HQ to northern Virginia. At a cost of just $12-$14 million to taxpayers, we supposedly got 300 new jobs coming our way. Good stuff, right?  

Yes, but.  The next thing we found out is that Northrop Grumman might also be laying off 330 people at Fort Eustis.  As a Richmond BizSense article asked at the time, "Did we gain 300 jobs only to lose 330? Is this Northrop's way of saying "thank you very much for the $14 million in tax breaks" that were, no doubt, a factor in their decision?"

Well, now it's begun.

Herndon-based Northrop Grumman says it's laying off 173 people in Virginia.

Northrop Grumman announced the layoff Friday. The company says the employees work at Fort Eustis, where Northrop Grumman provides maintenance, transportation and other services.

In other words, Nothrop Grumman giveth, Northrop Grumman taketh away. So far, Virginia's net jobs gain is 127 people (300-173) and falling fast, at a cost of $14 million.  That's about $100,000 per job, with the cost increasing as the number of net jobs gained falls. Great stuff, huh?  Heckuva job by Bob McDonnell.

On the other hand, as an added bonus, Virginia gets to enjoy its "troubled 10-year, $2.36 billion statewide outsourcing contract" with Northrop Grumman for information technology services.  Such a deal!

lowkell :: Northrop Grumman Giveth, Northrop Grumman Taketh Away
Tags: , , , (All Tags)
Print Friendly View Send As Email

Insult To Injury (0.00 / 0)
We should look even further. It is quite possible that another contractor won the exact contract. It will either hire new workers or bring on the old ones. This begs the questions:

Will the new contractor receive incentives for "moving" to Virginia?

Will we reward multiple companies for "creating" the same jobs over and over?

Will we count the same jobs as being "created" over and over?

This is a potential new twist on Ponzi's concept.  

So much for the "free market" (0.00 / 0)
This is corporate welfare run amok. What's amazing is that Bob McDonnell has the chutzpah to claim he's "pro-free-market," or whatever b.s. he's spouting these days, when in fact he's a classic, corporate welfare politician.

Follow me on Twitter. Follow Blue Virginia on Facebook and Twitter.

[ Parent ]
Yea Baby Yea (0.00 / 0)
I doubt these types of incentive programs really work. I also seriously doubt the tax breaks provided equal to or are greater than the tax revenue enhancements it was to produce with the business that moved.  

This kind of mindless crap is "non-denominational" and can be attributed to a politician who cannot read and fathom basic economic facts.

VA Governor got his moment in the sun,  and Grumman got what they wanted, my tax dollars.  This is what I call business friendly!

A complete outrage (0.00 / 0)
The fact that a major corporation can take the taxpayers' money for a particular purpose, then immediately defy that purpose and openly flaunt that defiance in our faces -- and expect to get away with it suffering zero consequences -- speaks volumes about the type of society we have become.

Are we still a democracy, or a corporate kleptocracy?

So what will Gov Bob do or say about this situation? My guess is: absolutely nothing beyond perhaps a few lame excuses and platitudes.

This is the type of thing that the public ought to be outraged about, rather than misdirecting their anger over phony charges of "socialism". When you have corporations like this reaming you every day is precisely when "socialism" starts to sound appealling.  

For a Sustainable Virginia. Now on Twitter.

More of a corporate kleptocracy (0.00 / 0)
We need a new trust buster, a la Teddy Roosevelt. Unfortunately, we don't have one. Republicans today certainly are not the "free market" party, so forget that, and Democrats are largely in bed with corporate interests as well. Not good.

P.S. Note that corporate hack Dick Armey has cleverly channeled people's "anger" against "socialism" and other phony targets, while the corporate interests Armey is working for rake in the corrupt cash.  No wonder why Armey gets paid the big bucks.

Follow me on Twitter. Follow Blue Virginia on Facebook and Twitter.

[ Parent ]

Make a New Account



Forget your username or password?



Donate to Blue Virginia

The purpose of Blue Virginia is to cover Virginia politics from a progressive and Democratic perspective. This is a group blog and a community blog. We invite everyone to comment here, but please be aware that profanity, personal attacks, bigotry, insults, rudeness, frequent unsupported or off-point statements, "trolling" (NOTE: that includes outright lies, whether about climate science, or what other people said, or whatever), and "troll ratings abuse" (e.g., "troll" rating someone simply because you disagree with their argument) are not permitted and, if continued, will lead to banning. For more on trolling, see the Daily Kos FAQs. Also note that diaries may be deleted if they do not contain at least 2 solid paragraphs of original text; if not, please use the comments section of a relevant diary. For more on writing diaries, click here. Thanks, and enjoy!

P.S. You can contact us at and you can subscribe to Lowell's Twitter feed here. If you'd like to subscribe to Miles Grant's Twitter feed, click here. For Teacherken, click here. For Kindler, click here.

P.P.S. To see the Blue Virginia archive, please click here. To see the Raising Kaine archive, please click here. To see the Blue Commonwealth archive, please click here.

RSS Feed

Subscribe to Blue Virginia - Front Page

Powered by: SoapBlox