How did the recession affect the more entrepreneurial functions of the local state? Economic development was one of few areas of discretionary spending that local governments could cut or defer in response to mid-budget cycle revenue shortfalls. Did cities maintain or alter their approach to facilitating private development in the years following the crisis?
Boeing is shopping for a location, threatening to leave Washington and take with it more than 80,000 jobs. Parallels are being drawn to Detroit, of course, and the “death spiral” that followed the automobile industry’s departure from that city. Alas, in both good times and bad companies are able to get localities to engage in […]
Behind the rhetoric about public employees bankrupting cities, there are a few silent drains on city budgets (and now London faces the likelihood that its hopes for a post-Olympics windfall, like nearly every other city in history, won’t materialize.) Sports stadiums are perhaps the biggest single subsidy packages doled out, and nearly every study shoes […]
The New York Times is running part two of its series on state and local corporate welfare. Today’s piece focuses on Texas, the biggest grantor of such subsidies, and a state at the forefront of both radical cuts to education spending and aggressive state tax cuts that have left both the state and local budgets […]
The New York Times is running a terrific series on tax breaks and other subsidies given by governments, especially local and state governments, to corporations that promise jobs and revenue, despite the patent failure of such subsidies to improve the economic situation of communities. This first part of the series features GM, among other companies, […]