In Search of Growth: Business Incentives in the Midwestern States

摘要

This report provides an overview of the use of incentives and economic211u001edevelopment programs in the Midwestern states. It begins with a brief historical 211u001eanalysis of the policy approaches to business development from the early 211u001estrategies of straightforward business attraction used from the 1950s through the 211u001e1970s to the strategy of indigenous development in the 1980s to more recent 211u001eefforts to ensure overall economic growth. The report then looks at specific 211u001epolicies employed in the Midwestern states. This is by no means a complete list 211u001eof policies; it does, however, show the variety of programs in place. Moreover, 211u001eit serves to demonstrate that the busi-ness attraction policies that were most 211u001eprevalent through the 1970s are still in use, as are those of the 1980s. For the 211u001emost part, policymakers have not re-placed these older policies conceived from 211u001eolder philosophies with those in vogue today. Rather, policymakers tend to add 211u001enew programs to the laundry list of existing policies, as well as tinkering with 211u001ethose already on the books. As we approach the 21st century, states are beginning 211u001eto realize that economic development involves or, at least, should involve more 211u001ethan the creation of new jobs or an increase in the number of new business 211u001estarts. Tax and financial incentives, however, remain the cornerstone of most 211u001estate economic development strategies. The struggle in states today is to balance 211u001esuch policies with a desire to create high-quality, high-wage jobs that add to 211u001ethe economic well-being of the community and the state, as well as the nation. 211u001eAnd as M. Ross Boyle, former chair of the American Economic Development Council, 211u001ehas argued, these efforts should include elements of community development and 211u001epolicy choices that promote equity, social well-being, environmental quality and 211u001eeconomic opportunity.