💸 Subsidies and City Economic Development: A Critical Discussion #420

This YouTube transcript captures a Dole Institute of Politics discussion on economic development incentives, or subsidies, used by cities. The host and guests, all critical of these practices, define subsidies as government provisions lowering business costs for specific entities. They trace the history of subsidies back to the Great Depression and discuss their evolution, including the emergence of clawbacks and the “border wars” between neighboring jurisdictions. The conversation further examines the ineffectiveness of many subsidies, particularly for convention centers, highlighting inflated economic impact projections and the influence of consultants. Ultimately, the speakers question the value and opportunity costs of these incentives, suggesting alternative approaches like focusing on the quality of place.

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