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December 06, 2004
Does it still pay to stay?
Posted by Dominic Basulto
James Surowiecki (author of The Wisdom of Crowds) pens a short piece in this week's New Yorker about the relative merits of "location-based incentives." Cities and municipalities, concerned that a big-name corporate tenant may be on the way out, have been ready, willing and able to cobble together enough tax incentives and other goodies to convince them to stay. But does that make economic sense? Especially for a city like New York, where companies can easily pack up and leave for New Jersey or Connecticut? However, as Surowiecki points out, it's not just that "corporate welfare" is no longer economically viable -- it could now be "technically illegal," thanks to a recent court ruling in Ohio.
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