Public Officials Should Say “No” To Economic Incentives That Don’t Advance The Public Good

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Public Officials Should Say “No” To Economic Incentives That Don’t Advance The Public Good
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Across the U.S., enormous public resources are given to manufacturing companies that often make grand promises but actually eliminate or undercut good American jobs

One of the most egregious examples of this involves President Trump and United Technologies, the parent company to Carrier, a furnace manufacturer. On the 2016 campaign trail, Trump declared that United Technologies “would have to pay a consequence” if the company moved one of its Carrier plants from Indiana to Mexico. All bets were off once Trump was elected.

This past November, the Committee debated a number of requests to grant tax credits to national companies wanting to do business in California. They all came in with big proposals promising to create better communities and increase jobs. Unfortunately, when I looked behind the curtain, that was not always the case.

The final exchange between the Committee and Kroger was typical: without the tax credit, Kroger threatened to take its business to Nevada. I’ve seen this bullying tactic used time and time again. In Kroger’s case, I felt the threat to go elsewhere did not outweigh the fact that the jobs would not be family-sustaining ones. The workers would earn low wages and lack a collective voice to push for better wages, benefits, and working conditions.

One thing is clear: we need new, transparent processes for these important decisions. That’s why I proposed to the Committee, and have been encouraging, the establishment of Technology Impact Assessments. These Assessments would require corporations to provide full information on the quantity and type of jobs to be created or eliminated, so cities and states would have the knowledge needed to determine if an investment of public resources will benefit communities.

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