The author argues in this article that the incentives that these states,
cities, and counties are giving to these companies are a waste of money because
it isn't an effective mechanism to lure these companies into choosing them.
This comes into the perceptive of the previous article, sometimes incentives
can pause the economic development and improvement of a company. In other words
these incentives weren’t benefiting anyone at the end. The only correlation
that they were able to find is that the communities that provided these
incentives to companies were the ones that were economically in need. While
incentives in the business world can work, it can also backfire. The incentives
have to be hand in hand. In the end if these communities do not have the
qualities or resources that these companies need in order to succeed their
contributions go to waste.
Incentives are almost
always involved when making business decisions. In the case stated in this
article I believe that the states, cities, and counties funds are being
depleted if they do not have the resources these companies need. In order for
one to offer incentives one has to be sure that they have other qualities to
offer that can help the other party in the long run. In the case of these
communities it is hard to say whether their incentives were going to waste or
not because of the lack of information on their economic state and resource’s
available. In their case they are giving incentives at their own risk. On the
other hand for the company it can be just like the article stated above. The
more revenue these companies see coming in the less work they put into
improving themselves economically. This in turn causes no employment growth in
the long run. Incentives are to be used wisely.
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