In researching compartive economic development models the data seems to indicate that there is a race to the bottom, i.e. the states or country that gives away the most to projects that would have been developed anyway win. The problem with that thesis is it’s a bit simplistic as there are many examples of states in that it:
1. Fails to recongixe that we live in a global economy as well as a natinal ecoomy and companies and invtors have real chocies;
2. It’s most often put forth by northeastern states and California which have been the major losers in the economic growth fo rthe last ten years;
3. It assumes sound government polices do not matter in business location decisions when it’s one of the top three considerations in the decsion maker’s consideration;
4. If a state or nation has sound policies and government, is there a need for economic development giveaways at all?