MADISON — A new George Mason University study concludes that economic development subsidies, specifically Wisconsin’s incentives for the controversial Foxconn project, could cause more economic harm than good.
The Mercatus Center’s study, “The Economics of a Targeted Economic Development Subsidy,” looks at the economic case for and against economic development subsidies, focusing on Wisconsin’s pledge of $3.6 billion in incentives to Taiwan-based electronics manufacturer Foxconn Technology Group.
“The weight of economic theory suggests that these subsidies do not work and may even depress economic activity,” according to the study. “We show that under realistic scenarios, the subsidy may depress state economic activity by tens of billions of dollars over the next 15 years.”...
Ken Notes: I truly hope not. I do agree that if we offered a tax incentive across the board for all growing companies it be far more successful...
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- - Volume: 7 - WEEK: 50 Date: 12/12/2019 4:53:50 PM -