Re: State bidding wars
One more note on this subject. There is a new book called NO MORE CANDY STORE: STATES AND CITIES MAKING JOB SUBSIDIES ACCOUNTABLE by the Federation for Inudstrial Retention and Renewal (FIRR), and the Grassroots Policy Project. THE book's blurb (and pardon my broken keyboard) goes: NO MORE CANDY STORE describes how cities and states are strengthening their economies by holding companies that receive development subsidies more accountable to local communities. In the new world of global trade and declining jobs, cities and states feel trapped in a bidding war for private investment. STATE and local governments grant companies tax abatements, credits, and loan subsidies hoping to get new jobs or hold onto existing ones. Too often the results are very different. Jobs don't get created, or in a few years the company moves again.. The governors, state officials, and local development expers are debating responses such as no-raiding agreements, clawbacks (?), and disclosure requirements. NO MORE CANDY STORE shows what grassroots groups and some cities and states have already done. IT is the first guide to how states and cities are holding companies accountable for good jobs. If you're looking for a better deal for your state or community, NO MORE CANDY STORE is the place to start. IT includes sample language from laws and contracts from across the U.S. and a glossary of development initiatives. Copies are $24 from FIRR, 3411 W. Diversey Ave., #10, Chicago, IL 60647. The contact person at FIRR is Greg LeRoy, 312/973-3126. I have no connection to FIRR and haven't read the book; this is just FYI. Michael
RE: State bidding wars
Dear Pen-l folks, I am working on a project that looks at changes in regional income distribution as a result of job losses due to plant closures and direct investment by U.S. firms in Mexico. Any references, articles you may recommend ? Thanks. Arvind Jaggi. e-mail: [EMAIL PROTECTED]
Re: State bidding wars
Kenney, Martin and Richard Florida. 1991. "How the Japanese Industry is Rebuilding the Rust Belt." Technology Review (February/March): pp. 25-33. 33: They show a pattern of increasing subsidies to transplants. In 1982, Honda received $25,000 in subsidies per job produced at Marysville, Ohio; In 1983, Nissan received $6,470 for each job in Smyrna, Tennessee; In 1987, Michigan gave Mazda $14,263 for each job at its Flat Rock plant; In 1988, Illinois gave Diamond Star, $28,724 per job at its Normal plant; In 1988, Kentucky gave Toyota $42,000 per job at its Georgetown plant; In 1989, Indiana gave $90,059 to Subaru-Isuzu for each job at its Lafayette plant. In the last 2 cases, the subsidy became an important issue in the gubernatorial election, and in both cases the party that gave incentives lost. -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 916-898-5321 916-898-6141 messages E-Mail [EMAIL PROTECTED]
Re: State bidding wars
On Mon, 3 Oct 1994, Ellen Dannin ([EMAIL PROTECTED]) wrote: Treacy: A couple of years ago the Wall Street Journal had a good write up of the Flat Rock, Michegan Mazada Plant fisco. The local government was requesting state relief from the bad deal it had cut. [EMAIL PROTECTED]
State bidding wars
Is anyone aware of any cost-benefit analyses which have been done as to government subsidies given to persuade companies to locate to an area or not to relocate from an area? Some of the subsidies are quite high on a per job basis, so that it seems hard to believe the citizens will ever receive any reasonable return on the money foregone. Ellen J. Dannin California Western School of Law 225 Cedar Street San Diego, CA 92101 Phone: 619-525-1449 Fax:619-696-
