Local governments that offer greater incentives for businessesdo not retrench welfare services

摘要

In the pursuit of economic development and growth, many local governments in the US areudincreasingly turning to offering lucrative incentives to businesses such as tax incentives, loans andudother subsidies. Many scholars and commentators have become concerned that these incentives areudgoing hand in hand with the gutting of social welfare services. In new research, Lazarus Adua andudLinda Lobao find no such relationship between counties putting in place business incentives andudcutting services. In fact, such counties were actually more likely to provide a greater number of socialudservices.