In the name of “economic development,” state and local governments spend seemingly infinite resources on “visions,” “planning,” “offering incentives,” and the like to create the appearance of business prosperity. But it’s not real. The problem is that well-intended entrepreneurs get duped into thinking their idea is profitable in the context of the government’s plan. But as I said above, support for a product is not the same as support for a business model.
This article is a good micro example of a macro problem.
- Economic Development Agencies Come Under More Fire (blogs.wsj.com)