This article explains how economic development deals may not be such a good thing. The last two paragraphs summarize the reason for the article, and offer a warning to those so willing to take a chance with the revenue of a municipality for gain that may be as ethereal as a jackpot at a casino.
My personal experience with such "deals" was having some friends having business problems due to their city allowing a special deal for a large retail chain. Their products would now be sold at the large chain, as well as other local businesses, and the retailer received a tax abatement. In the end, the economic disaster destroyed small businesses and caused harm to the tax paying citizens that once funded the city.
Did it help the community? From my perspective, it didn't, and caused some well founded resentment to those that are supposed to represent the local community. Losing tax revenue from local businesses, decreasing the value of commercial real estate, and opening the door to corruption are not healthy results. Whether the decision increased the revenue is not really important. Hurting local business, and individuals, for a gamble is as ridiculous as betting on the ponies with public funds.
Capitalism is not picking winners and losers.
ReplyDeleteNo it isn't. Removing the meddling of politics is more than necessary.
DeleteThe bottom line is that the ones in the loop get what they want and the rest is collateral damage to those that don't matter.
ReplyDeleteAnd those in the loop profit from the misery of others.
DeleteI am convinced our ruling class has been completely nuts for a very long time…
ReplyDeleteThey think they're the ruling class and act accordingly. A less polite society would be stacking many of them up like cord wood,
DeleteThe right incentives can be beneficial for both sides. Too often? It hollows out existing businesses.
ReplyDeleteThere has to be a substantial increase in revenue for the municipality, whether it's a city or a county. That, and it has to introduce an increase in the services already offered. If not, local businesses are injured, and the taxpayers are faced with an increased tax burden on existing debt.
DeleteThe biggest problem is governments are filled with ignorant people, EEO derelicts, unrealistic expectations and grifters. It's a recipe for disaster.