Trenton Doesn’t Make, Starbucks Pulls up Stakes

Trenton

It’s everywhere and impacting everything and yet we rarely discuss it because we have come to accept it as the natural order of things, a kind of Machina ex Deus conveyor belt to a “profitable” tomorrow no matter how miserable that future might be. Yet, we still have free will and when something isn’t working, or it could work better, we have to summon the character to act.

For decades, encouraged by the U. S. tax code that promotes capital concentration and corporate consolidation, we’ve watched as practically every business whether it be banks, utilities, drug company, supermarket, meat processors, beer producers or hospitals have been absorbed by some larger entity. This means that the beneficial ownership of something as vital as your local water utility may well reside outside your state, indeed outside the United States. And as the controls flows outward, so does the capital.

It’s ironic considering that the United States came into being as part of the time released deconstruction of the British Empire now has spawned so many multinational behemoths.

This Bud’s for you—not really—it’s owner is Anheuser-Busch InBev, a multinational based in Belgium Our tax system likes big companies, the bigger the better. It can help itself at pyramid building. Once you get it, there’s no mystery to why we continue to see the widening of income inequality. For a couple of generations as corporations grew, wages remained flat or declined relative to the real cost of living.

Our dysfunctional Congress is no match for these global corporate giants especially since so many of our elected representatives have their handout for donations from them or their lobbyists agents.

Consider the scramble in Congress to prohibit the distribution or hosting of the app TikTok here in the U.S. unless the Chinese based ByteDance sells off its stake in it. At issue is whether the data of 170 million American subscribers held by the private company could be somehow leveraged by the Chinese government. The Foreign Adversary Controlled Applications Act sailed through the House by a lopsided 352-65 bi-partisan vote.

Earlier this week, Trenton Mayor Reed Gusciora had to fire off a quick letter to Starbuck CEO Laxman Narasimhan entreating the multinational executive to reconsider the closure it’s state capital location because it would deal  “a significant blow to the progress….made in fostering a more equitable and vibrant city.” Gusciora recounted Starbuck’s propitious opening in 2017 as part of the global brand’s commitment to distressed cities to uplift at risk youth by providing them their first job in what was described by the chain as a “Community Store.”

Starbucks, with over $36 billion in annual revenue, has close to 36,000 stores most of which are in 79  countries other than the United States. After years of dinging its own ‘socially conscious’ branding with its union busting activities, last month the global coffee giant and Workers United agreed on a “path forward” after close to 400 Starbucks locations on 43 states voted to go union.

Gusciora is hoping for another change of heart on the closure. He told InsiderNJ by text that he “had a productive meeting with them [Starbucks] today” and that they met with Gov. Murphy yesterday. The location was slated to be closed at the end of this month.

Pastor Rupert Hall leads the Turning Point United Methodist Church in Trenton. He’s hoping for a reprieve even though two brand new independent coffee shops have opened, the Orchid House and the Slammin Brew.

“Being a neighbor of Starbucks this would be a real blow to our effort of rejuvenating downtown Trenton,” Hall told InsiderNJ. “The Starbucks has hosted a number of community events specifically open MIC nights which have drawn ab intergenerational audience and participants. Starbucks has become a central meeting place for informal meetings for various business and political leaders.”

Hall said the Starbucks survival took on added significance because unlike so many other businesses in the central business district it endured despite the “drop in foot traffic” during the mass death event.

It’s hard to overstate Trenton’s significance during the American Revolution. At the site of the now vacant First Trenton National Bank an historical marker commemorated that in December of 1787 it was the site of New Jersey’s ratification of the Constitution of the United States. More than a decade earlier in December of 1776, New Jersey’s capitol was the scene of the Battle of Trenton where after a high stakes crossing of the Delaware River, General George Washington “defeated a garrison of Hessian mercenaries” setting “the stage for another success at Princeton a week later and boosted the morale of the American troops.”

Trenton’s population was at its highest in 1950 at almost 130,000. Today, it’s dropped to 90,000. Coming out of the WWII production boom there were over 70,000 private sector jobs with companies like Lenox, Boehm, American Standard and Roebling.

“With its strategic location on the Delaware River, as well as its rail and canal access, Trenton developed into an industrial and manufacturing hub early in this country’s history,” according to Trenton.250, the city’s long term master plan. “Ironworks and potteries flourished first in Trenton, with steel and ceramics developing into iconic Trenton businesses, followed by rubber manufacturing….After the city’s chamber of commerce had held a contest for a civic slogan, ‘Trenton Makes The World Takes’ was selected to reflect the city’s manufacturing prowess.”

Our tax policy actually incentivized U.S. corporations to expand outside of the United States, setting into motion the deindustrialization of places like Trenton. Now, as President Biden noted in the state of the union address, their rate of taxation lags far behind what working households have to pay Uncle Sam. We need a realignment to this lopsided prosperity that leaves tens of millions of Americans behind.

Close to two thirds of Trenton’s households are living in poverty or struggling month to month to make ends meet, according to data from the latest United Ways ALICE (asset limited, income constrained, and employed) Report. The per capita income is $25,633, as compared to over $51,000 statewide. With a median household income of $52,508, Trenton’s is roughly half of the state’s over $96,000 median household income.

In the aggregate, the United States has posted some strong economic gains of late yet there are a lot of places like Trenton that systemic racism, health disparities, wealth concentration and long-term disinvestment have left behind. These zip codes fared the worst during COVID and when Sen. Joe Manchin and Congressional Republicans pulled the plug on social supports like the Expanded Child Tax Credit, millions of children fell back into poverty including thousands in Trenton. Similarly, the ending of the eviction and foreclosure moratoriums, along with the purging of the Medicaid rolls pulled the safety net on families in freefall before COVID.

Mayor Gusciora says he saw it in his city.

“They are absolutely stressed,” he told InsiderNJ. “People are losing the security of their homes in that landlords are increasing their rents. They are not affordable anymore. The prices for houses in Trenton have grown astronomically. I could probably get double for my house but that doesn’t do any good for people that need affordable housing.”

Trenton’s Mayor worries about the 3,000 vacant homes, many of them so-called row houses, that during the winter the city’s homeless population find shelter in. “We have squatters living in these abandoned homes and the only option they have is to start fires inside them” which jeopardizes the lives of the homeless, firefighters and “those in the legally occupied homes literally next door,” he said.

Like so much of the rest of the country, Trenton has problematic vacancies in critical municipal jobs like plumbing inspector.

“It’s hard to get plumbing inspectors because you really need to have plumbing skills and a municipality can’t possibly pay the same rate as a plumber could make on his own, so that’s a real challenge,” Gusciora said. “Get a backlog in inspections and that effects economic development. We have developers calling me all the time saying when are we going to get the building inspected so we can move the project forward?”

This week, the Washington Post reported President Biden came to a Black and Latino neighborhood in Milwaukee that was emblematic “of racist urban policy” that resulted in it being “cut off from the nation’s growing prosperity” when “17,000 homes and 1,000 businesses were destroyed in the 1960s to make way for an interstate highway.”

“In conjunction with the Midwestern swing, the White House unveiled $3.3 billion in federal grants to remove or retrofit highways that separate minority neighborhoods in many cities from jobs, entertainment centers, hospitals and other services,” the Washington Post reported.

“Too many communities across America faced the loss of land, wealth and possibilities that still reverberate today. Today we’re recognizing that history to make new history,” Biden said, according to the newspaper. “For communities too often left behind, we’re rebuilding the roads, we’re repairing cracks in the sidewalk. We’re creating places to live and play safely and to breathe clean air.”

Gusciora told InsiderNJ he would welcome a Biden visit.

“He would be welcomed actually—when I went to the Mayor’s conference I met him in the White House when we had the closing reception which the president hosted and I went up to him and told him I was from Trenton and he said we were neighbors and that we had a lot of history in Trenton,” Gusciora said.

But what about its future, Mr. President?

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5 responses to “Trenton Doesn’t Make, Starbucks Pulls up Stakes”

  1. Bob -EF Starbucks – kiss them goodbye. In addition to their anti-union stance, there already is boycott because they support genocide

    It is truly pathetic when an urban Mayor has to grovel and beg for keeping a corporate anti-union coffee shop in town. Trenton is the only State capital in the Country with no movie theater. Reed Gucsiora needs to grow a pair.

  2. I call BS on the Mayor – he could make squatters legal residents of abandoned buildings if he’d enforce laws against landlords of abandoned buildings and tax delinquincy.

    The model for Trenton’s revitalization was laid down by the Weedman – but all the City and the Cops could do was to harass and prosecute him. Ef Reed G. So sick fake democrats.

  3. Excellent! Well written and researched article. The people of Trenton deserve better. It is a beautiful city with a rich history with many good citizens who are rendered to their knees. I hope the political and civic leaders do more to raise this city up.

  4. My wife and I have lived in Trenton for 33 years – raised 3 sons – renovated our home in a historic neighborhood – and in all of those 33 years – nothing and I mean nothing has really improved under ANY of the administrations that have been responsible for economic development – sure we have a ballpark – developed and run by Mercer county, the Cure arena – developed and run by Mercer county. And a hotel – developed by the city and run by…oh that failed and Trenton taxpayers are still footing the bill because the city floated bonds to finance the project. The State of NJ – they do not care, other than police protection, the state seeks to do all of its entertainment in Princeton – When Jon Corzine was elected Governor, his Inauguration ball was held in Princeton – not in the brand new Marriott that had just opened (its boarded up now) – and as far as this great history that everyone talks about – we have the Barracks – not much -considering how important The Battle of Trenton is portrayed – just take a ride up river to Washington Crossing Pa – where an entire village and center exists memorializing the crossing – but nothing like that here. I have a theory why Trenton is so dysfunctional, why investment is paltry, why all the great restaurants in Chambersburg left – but it is too politically incorrect to write about in this space – but everyone who knows Trenton, knows what I am referring to.

  5. Someone said Trenton Mayor Reed Gusciora should “grow a pair”. He can’t. He likes the male persuasion instead.

    Second, Reed Gusciora is a Democrat-Communist who was in the Democrat-Controlled Legislature for years. They did nothing to help N.J. for decades, except ruin the state and run it into the ground. Gusciora comes from that ilk. Now, he’s another Democrat-Communist mayor running Trenton right into the ground, just like Detroit, NYC, LA, Chicago, Baltimore, etc.

    The reason is obvious why businesses are leaving Trenton. It’s due to the Party of Death–the Democrat-Communists. Everywhere they go, they leave death, destruction and squalor in their wake. No business wants to deal with them anymore; so they move out to more friendly and Republican-Conservative confines where people have money to spend.

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