How Does Economic Development Work
Back to one of my favorite topics, the amount of money wasted on economic development in the St. Louis Region. Millions of dollars are being spent on private and public organizations that focus on job growth. The controversy with the Blues and the Regional Chamber leader, Mr. Regan simply reflect the impotence of economic development organizations on whom we spend millions of dollars while are local economy lessens.
Years ago an economist friend of mine showed me that offering incentives in the way of tax abatement and other government services was a losing proposition. The costs of the benefits were more than the potential gains. What do cause businesses to locate in an area. I would guess they are the following:
1. A strong, able, and well educated workforce
2. Good roads, transportation, and airports
3. Good schools
4. Things to do
5. A culture accepting of diversity
You notice I did not mention tax structure which is the favorite bugaboo of the right. New York, California, and Massachusetts have the highest taxes, but great economies. In conclusion, be very skeptical of the claims of economic development organizations. Written by Paul Dribin
The St Louis Contrarian 