Why subsidize wealthy corporations? | Arkansas Blog

Sunday, January 8, 2012

Why subsidize wealthy corporations?

Posted By on Sun, Jan 8, 2012 at 7:03 AM

The New York Times takes another run today at examining the handouts state give to lure manufacturers. The familiar points are touched, particularly the core question of why taxpayers should bribe profit-rich corporations and whether the return is worth the investment. This particular article looks further at a handout for job training, a routine benefit offered in Arkansas, including to Caterpillar, the featured recipient in the Times' article.

These handouts are such an article of faith among Arkansas politicians — check their campaign reports for the money that elects them — that it's almost a waste of time to discuss (up there with the ever-increasing devotion of newsprint acreage in the Democrat-Gazette to the still-dead David O. Dodd.) The near-universal support is also reflected in the Times article, though it notes:

Various studies have long questioned whether states get their money’s worth from incentives for companies that build facilities or expand existing ones. In a report last month, Good Jobs First, a nonprofit research organization that tracks such spending, found that states often attract companies that create few jobs, pay low wages or scrimp on health insurance.

But customized job training for a specific employer still holds favor with public officials, who often argue it may be an effective use of taxpayer dollars, especially when so many workers have been displaced. Targeted programs can be preferable to the more general training paid for by the federal government, programs that have been used by hundreds of thousands of Americans yet have left many participants still out of work.

From the ArkTimes store

Favorite

Comments (3)

Showing 1-3 of 3

Add a comment

 
Subscribe to this thread:
Showing 1-3 of 3

Add a comment

More by Max Brantley

Readers also liked…

  • In Little Rock, Marco Rubio sells American exceptionalism

    This is Rubio's axiomatic answer to Donald Trump's insistence that he and he alone will Make America Great Again: America is the greatest, always has been.
    • Feb 22, 2016
  • The two cities of Little Rock: East/west, black/white

    The Little Rock City Board illustrated this week a community divided over public schools, another blow to the Little Rock School District and another illustration of the need for ward elections to the board.
    • Mar 23, 2017
  • Auditor Lea caught not telling the truth

    State Auditor Andrea Lea, who began her tenure in statewide office with a degree of competence unseen in some other Republican counterparts (think Treasurer Dennis Milligan particularly), is becoming more deeply mired in a political scandal.
    • Mar 4, 2016

Most Shared

  • ASU to reap $3.69 million from estate of Jim and Wanda Lee Vaughn

    Arkansas State University announced today plans for spending an expected $3.69 million gift in the final distribution of the estate of Jim and Wanda Lee Vaughn, who died in 2013 and 2015 respectively.
  • Bad health care bill, again

    Wait! Postpone tax reform and everything else for a while longer because the Senate is going to try to repeal and replace the Affordable Care Act one more time before September ends and while it can do it with the votes of only 50 senators.
  • Sex on campus

    Look, the Great Campus Rape Crisis was mainly hype all along. What Vice President Joe Biden described as an epidemic of sexual violence sweeping American college campuses in 2011 was vastly overstated.
  • The inadequate legacy of Brown

    LRSD continues to abdicate its responsibility to educate poor black students.

Most Viewed

Most Recent Comments

Blogroll

 

© 2017 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation