Saturday, June 4, 2005

Tax Breaks for Businesses - Good or Evil?

Interesting analysis from Coyote Blog on Business Relocations and the Prisoners Dilemna:
"One of the favorite past-times of local and state politicians is to hand out grants, subsidies, and tax breaks for businesses to relocate to their district. "

Coyote Blog posits three explanations for these "wasteful" subsidies:
  1. Politics - satisfy interests of both political parties
  2. Politicians like to buy votes with others' dough
  3. Its a "prisoner's dilemma" -- you're better off if everyone doesn't play the game, but if your opponent plays, then you're f---ed!

Pretty interesting take on this...

Take a look!