- They promise jobs, but leave dilapidated schools and crumbling roads in their wake.
- A growing trend
- Schafer | Why handouts are a bad way for state to help companies
- NAFTA, Twenty Years After: A Disaster
Kenneth Thomas, Alternet
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August 7, 2013 | You would barely know it from reading the mainstream press, but corporate subsidies given by state and local governments are big business — and getting bigger every day. Since the onset of the Great Recession, these giveaways have gotten completely out of control as locations desperate for investment throw more and more money at any project that promises to “create jobs.” That’s a false promise. What they mainly do is drain government coffers in a game of job creation musical chairs.
These subsidies come at a huge cost: about $70 billion per year,* enough to hire 1.4 million state and local government workers at $50,000 per year, or almost three times the total laid off since the beginning of the recession. On top of that, corporate giveaways screw up the economy in 3 ways.
Kenneth Thomas is Professor of Political Science, University of Missouri-St. Louis. Author of Competing for Capital: Europe and North America in a Global Era (Georgetown University Press, 2000) and Investment Incentives and the Global Competition for Capital (Palgrave, 2011).
Schafer | Why handouts are a bad way for state to help companies, Lee Schafer, Minneapolis (MN) StarTribune
- Subsidizing an employer in any particular town or state may result in job gains there, but the overall economy doesn’t grow as fast as it would without that kind of subsidy, in part because some taxpayers’ money gets diverted from public investments such as education or transportation networks.
- How Corporate Giveaways to Applebee’s, Sears, and Other Companies Suck the Lifeblood from Your Community
NAFTA, Twenty Years After: A Disaster, Jeff Faux, Huffington Post
- By any measure, NAFTA and its sequels has been a major contributor to the rising inequality of incomes and wealth that Barack Obama bemoans in his speeches. Yet today -- channeling Reagan, the Bushes and Clinton -- the president proposes two more such trade deals: the Trans-Pacific Partnership with eleven Pacific Rim countries and a free trade agreement with Europe.
- Secretive Trans-Pacific Partnership Revealed