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Ben Secord on January 9, 2012 - 11:54am
Every year, states spend billions on tax credits, subsidies and cash grants to corporations and industries in the name of economic development. With the stagnant recovery and still high unemployment rates, there is mounting scrutiny on whether these programs are actually creating jobs.
A new report from Good Jobs First, which surveyed 238 economic development programs across the country, shows that while many states have at least some performance requirements, almost half don’t have any job creation, retention or training standards. The programs with no job creation requirements are costing states over $7 billion a year.
Phil Mattera, Research Director at Good Jobs First and the Reports principal author said, “If subsidies do not result in real public benefits, they are no better than corporate giveaways. States should be using these programs to reduce unemployment and raise living standards, not simply to increase corporate profits.”
The report grades every state on how effectively it ties job standards to major economic development subsidies. See how your state ranks here.