Apr 17, 2007
A New Direction
North Carolina could explore other labor-intensive subsidy models, especially since job creation is a prime imperative in these counties. Indeed, one of the paradoxes of the field of business incentives is that most development subsidies are capital-based, yet they are supposed to create jobs. Such subsidies can create jobs, but they are less efficient than labor-targeted ones. Capital subsidies only generate employment as a byproduct of increased production; that is, employment increases are coincidental. However, this does not mean that capital subsidies are inherently good: It just means labor-targeted subsidies offer more direct and potentially cost-effective ways of creating jobs.
Apr 17, 2007
As part of the Rural Dislocated Worker Initiative, the Rural Center seeks to understand the many aspects of worker dislocation, from the numbers of people affected to the programs and policies designed to assist them.
Apr 17, 2007
The handwriting is on the wall. American manufacturing is only viable if it goes off-shore. We can't compete with Third World wages. If a firm's management cannot turn around their business, why do you think some government program or nonprofit can pull this off?
Apr 12, 2007
All Americans recognize that China is a rising economic power. According to the Institute for International Economics, China became the third largest trading nation in the world in 2004. This rapid ascent is not only a function of its sheer size and high growth rates, but also its openness to trade and foreign investment.
Mar 21, 2007
As the price of attracting footloose corporations like Google, Dell and others climbs to new heights and their demands grow more bizarre (e.g. vows of secrecy, country club memberships for relocating executives, etc.), many policymakers and citizens looking to boost their states and communities feel trapped. These leaders perceive that, whatever they may think personally about corporate incentives, they and their communities must “play the game” in order to have dynamic and hospitable economies. In short, they feel trapped on a train that they cannot get off, whether they like it or not.
Feb 8, 2007
Among the most interesting things to come out of a recent article entitled “The Promise of Progressive Federalism” by Richard B. Freeman and Joel Rogers are data regarding the comparative economic performances of “red states” and “blue states” over the past 35 years. These data expose the weaknesses in the anti-government version of business climate that argues that the best environment for private enterprise is one characterized by low wages, lax regulation, no unions, and low taxes.
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