Economic Bidding Wars

Welcome to an incendiary political and economic debate.

Are development incentives good or bad? Proponents say incentives create a business-friendly, entrepreneurial climate; promote local job opportunities and worker training; enhance private sector productivity and competitiveness. Opponents charge that these giveaways divert government money from supporting traditional public goods like education, frequently cost far more than any realized benefits and misallocate resources.

Overview by Chris Farrell

Congress should end the economic war among the states, Arthur Rolnick Testimony,
October 10, 2007 [PDF]

Congress should end the economic war among the states 1994 Annual Report essay

Distorting Subsidies Limitation Act of 1999
(H.R. 1060) introduced by U.S. Rep. David Minge of Minnesota

Economic Development in Minnesota: High Subsidies, Low Wages, Absent Standards, Citizens for Tax Justice [PDF format]

National Conference and Symposium Resources

More than 70 economists, policymakers, lawyers, tax administrators, and business and labor leaders debated this issue at a national conference held in Washington, D.C., on May 21-22, 1996, hosted by Minnesota Public Radio's Civic Journalism Initiative.

  • Special issue of The Region

    The June 1996 issue reports on the proceedings of the National Conference.
  • Minnesota Public Radio

  • Harvard University, Kennedy School of Government Case Study

    North Carolina and the Battle for Business
    This case puts students in the role of a top economic advisor to Governor Jim Hunt of North Carolina and provides official reports, news articles and legal briefs as background.

Minneapolis Fed Publications

The Minneapolis Fed has published several related articles.

Media Citations