Re: It just proves...
From the Atlantic's article:-
Thus a state with declining wages for many public-school teachers could wind up paying more than $500,000 per net new Foxconn job
States have bigger problems. There's wage pressure from public sector workers, especially if an influx of new jobs leads to gentrification, rising rents and other living costs (Hello, San Fran!) and pressure on public schools & other infrastructure. And then to top that, massive pension liabilities or just finding money to patch up potholes.
So the residents will pick up the tab for massive displays of corporate welfare on the slim possibility that the move will create wealth to cover the costs. And given the tax breaks that get offered, those won't come from the corporates themselves. But other than risking re-election, the politicians doling out the welfare have no skin in the game, other than perhaps finding future consulting/lobbying gigs or help with fund raising.
And in Amazon's case, it's perhaps a little less palatable given it's effect on traditional US retailers, with the corresponding loss of jobs.. Which then leads to declining tax receipts and increased welfare costs. I don't know what the solution would look like, other than perhaps collusion to no-bid these types of deals. Or I guess you could try contractually writing in state benefits, ie if Foxconn or Amazon promise thousands of jobs, but don't deliver, they pay. The deals do often seem to be very bad business for the states that 'win' these deals though.
Biting the hand that feeds IT
