Are development incentives good or bad? Proponents say incentives create a business-friendly, entrepreneurial climate; promote local job opportunities and worker training; enhance private sector productivity and competitiveness. Opponents charge that these giveaways divert government money from supporting traditional public goods like education, frequently cost far more than any realized benefits and misallocate resources.
Congress should end the economic war among the states,
Arthur Rolnick Testimony,
October 10, 2007 [PDF]
Congress should end the economic war among the states 1994 Annual Report essay
Distorting Subsidies Limitation Act of 1999
(H.R. 1060) introduced by U.S. Rep. David Minge of Minnesota
Economic Development in Minnesota: High Subsidies, Low Wages, Absent Standards, Citizens for Tax Justice [PDF format]
More than 70 economists, policymakers, lawyers, tax administrators, and business and labor leaders debated this issue at a national conference held in Washington, D.C., on May 21-22, 1996, hosted by Minnesota Public Radio's Civic Journalism Initiative.
The Economic War Among the States: A Symposium for National Discussion designed to focus attention on the issue, stimulate national discussion, and develop a reasoned response.
The Minneapolis Fed has published several related articles.