Hillary Clinton on Wednesday accused Donald Trump of looting his casinos and pillaging Atlantic City, and that was the gracious part. If she’s going to criticize Mr. Trump’s business record, she should also have to defend the failure of Atlantic City’s model of progressive governance.
Democrats aim to rehash the story of how Mr. Trump loaded his casinos with debt and declared bankruptcy four times—stiffing creditors and workers while shielding himself personally—ad nauseam through November. “He doesn’t default and go bankrupt as a last resort,” Mrs. Clinton declared. “He does it over and over again on purpose.” She’s one to talk about incorrigible behavior.
While Mr. Trump may have contributed to Atlantic City’s downward spiral by oversaturating the casino market, it takes more than one man to raze a city. The businessman experienced a moment of lucidity—if only he could expand beyond 140 characters—when he fired back in a tweet that “Democrat pols in Atlantic City made all the wrong moves—Convention Center, Airport—and destroyed City.”
In 1976 New Jersey voters approved a referendum that legalized gambling in Atlantic City. The constitutional amendment required casino revenues to fund programs for senior citizens and disabled residents, but politicians have instead funneled the cash to favored projects and businesses under the guise of promoting development. Guess how that’s turned out?
A 1984 law required casinos to pay 2.5% of gaming revenues to the state or “reinvest” 1.25% in tax-exempt bonds issued by the state Casino Reinvestment Development Authority for state and community “projects that would not attract capital in normal market conditions.” Investment recipients have included Best of Bass Pro shop, Margaritaville and Healthplex.
A decade later, state lawmakers imposed a $1.50 fee (which has since doubled) on casino parking spots to fund Atlantic City transportation, casino construction and a convention center. In 2004 lawmakers added a $3 surcharge for casino hotel stays to finance new hotel rooms and retail establishments, which had the effect of promoting unsustainable commercial and casino development. CONTINUE AT SITE