Corporate Extortion: States Are Giving Billions to Corporations That Don’t Create Jobs

By Steven Rosenfeld

December 12, 2013  |  As the nation turns its attention to the latest federal budget deal where curtailed spending and cuts are the defining principal, a dozen blue and red state governors are in a bidding war recklessly offering to spend billions for tax breaks and other public-paid subsidies to lure the corporate giant Boeing to build its next-generation aircraft factory.

 

Beyond the schizophrenic spectre of congressional negotiators saying no to spending as governors are offering [3] mountains of cash is a maddening reality: these taxpayer subsidies do not create the promised jobs or investments, a series of striking academic studies have found. All they do is boost bottom lines by cutting corporate costs.