Category Archives: Business incentives

State economic development policies: what works?

I delivered a speech about  state economic development policies on November 30, 2011. The presentation was made in D.C. at the 19th Annual State Fiscal Policy Conference of the Center on Budget and Policy Priorities. The text of my prepared … Continue reading

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Financing early childhood programs by increased taxes will not destroy local jobs, but rather will create jobs

As I mentioned in a previous blog post, I recently testified about early childhood programs before a state legislative committee. A legislator asked a subsequent witness a question whose gist was as follows: “Won’t imposing the taxes to pay for … Continue reading

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Why the goal of local economic development should be higher earnings per capita, not job growth, and why it matters

Developing good local economic development policies depends in part on having the right goals. Many economic developers and policymakers see economic development as being about increasing local job growth. But increasing local job growth is not a sound goal for … Continue reading

Posted in Business incentives, Distribution of benefits, Early childhood programs, Economic development, Incentive design issues, National vs. state vs. local | Comments Off on Why the goal of local economic development should be higher earnings per capita, not job growth, and why it matters

Obama’s jobs plan

President Obama proposed a $450 billion jobs plan in his address to Congress on September 8. Several reporters have asked me for my opinion on this plan. I think this plan is best described as an ambitious, “kitchen sink” approach … Continue reading

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Job creation policies: Minnesota’s MEED program vs. Georgia Works

There is a huge need for job creation in the U.S. Given the length and severity of the recession, we are short around 12 million jobs compared to what would be needed to be at pre-recession labor market conditions. I’ve … Continue reading

Posted in Business incentives, Economic development, Incentive design issues, National vs. state vs. local | 3 Comments

Cost-effective short-term job creation policies

The U.S. economy is clearly in need of short-term job creation policies. The economy is short at least 12 million jobs, compared to what would be required to match pre-recession employment-to-population ratios. Unless something dramatic changes, these slack labor market … Continue reading

Posted in Business incentives, Early childhood programs, Economic development, Timing of benefits | 1 Comment

Recent testimony by Art Rolnick

Dr. Art Rolnick, former research director of the Minneapolis Fed, recently testified before the U.S. Congress on early childhood programs as economic development programs.  The hearing and Dr. Rolnick’s testimony was requested by Senator Al Franken, who also questioned Dr. … Continue reading

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What works in job creation and economic development

Yesterday, I gave the keynote address to a conference organized by the National Employment Law Project (NELP). The NELP conference focused on grassroots ideas for creating jobs and economic opportunities in local communities. My keynote address was entitled “What Works … Continue reading

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Good policy analysis requires thinking about overall effects of feasible policy options

A recent conversation with a reporter involved some discussion of how individuals frequently analyze the effects of public policies from a perspective that is too narrow. Good policy analysis requires looking at ALL the effects of a feasible policy package. … Continue reading

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Michigan’s recently-enacted business tax cuts

Several reporters have recently asked for my opinion on the business tax cuts recently enacted in Michigan. These business tax cuts lower the main state business tax in Michigan by about $1.7 billion annually. Will these tax cuts succeed in … Continue reading

Posted in Business incentives, Economic development | 1 Comment