Nathan Jensen, a political science professor at Washington University in St. Louis, has found evidence that one of the most popular strategies for state and local leaders to attract new business does not pay off.
The default strategy of stealing away employers from other locations with lucrative incentive packages is almost a default strategy of political leaders in some part of the country, according to an article by J.D. Harrison.
Such incentive packages cost taxpayers around $70 billion annually, according to Harrison, "and there’s new evidence that it’s not particularly effective at a local level, either."
The article describes the findings and implications of a study by Nathan Jensen, which "concluded that there is 'no evidence' that those oft-used tax incentive programs have any positive effect on job creation. In fact, by cutting into public funds that could have been used for other programs that, say, spur private investment or fund research, and by making it harder for employers who do not receive tax breaks to compete in the market, the programs may actually be having a detrimental effect."
Read the full story: How an oft-used economic development tactic may actually be hurting the economy
Georgia Offers Massive Incentive Package to EV Manufacturer
Critics question the wisdom of giving Georgia's largest-ever incentive package to electric car manufacturer Rivian to secure a new factory and job training center in East Atlanta.
Digging Deeper Into the Deal That Brought GE to Boston
The big news about GE moving to Boston is more than just a story about a large company moving from the suburbs to the big city—it's also about how far cities will go to attract new jobs, and at what cost.
Subsidizing Sprawl Through Relocation Tax Breaks
A new study from the nonprofit research center Good Jobs First looks into how relocation tax breaks for businesses have encouraged sprawl in the Cleveland and Cincinnati metropolitan areas.
Planetizen Federal Action Tracker
A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.
Eastern Nebraska is running out of electricity
Data centers and electrification are straining eastern Nebraska’s grid, throttling economic development.
Study reveals best places in the U.S. for cycling, walking
New research from Streetlight Data examines bicycle and pedestrian miles per capita in the 100 largest U.S. cities by population.
Federal government nominates new FTA administrator
Mark Aesch is currently the founder and CEO of a transportation management consulting firm.
Developers reveal $10 billion stadium plan as ‘Hail Mary’ to keep Bears in Chicago
The plan would also boast a public park, high- and mid-rise buildings and a youth sports complex.
As Texas embraces carbon storage, a Black community questions the risks
Texas now issues permits for companies to store carbon dioxide underground. East Texas residents fear safety risks, and skeptics doubt the climate benefits.
FREE Course: Walkable City 1: Why Walkability?
After describing his path towards focusing on walkability as the essence of good planning, Jeff Speck marches through his five principal reasons for making more walkable places.
Reinventing Malls: Planning Alchemy—Turning Gray Fields Into Gold
The course focuses on the opportunities and imperatives that shape reinvention of mall sites.
City of Rosemead
Rutgers University, Edward J. Bloustein School of Planning and Public Policy
One Hundred Miles
University of Michigan School for Environment and Sustainability (SEAS)
Hunter College, City University of New York (CUNY)
The Architects Foundation
City of Cambridge
The Pocatello Development Authority
The Urban Renewal Agency of the City of Pocatello