The red hat of corporate welfare

Posted on June 13, 2012 at 4:57 pm, by

In January, Gov. Bev Perdue announced that open-source software giant Red Hat, headquartered in Raleigh, would receive two separate grants from the state, worth close to $15 million. In return, the company would not leave Raleigh for, say, Boston, Atlanta, or Austin, but instead would stay in Raleigh and expand. The governor donned a red hat herself for the announcement.

Red Hat would move out of NC State’s Centennial Campus in the process, but Raleigh and NC State were not to worry, because Red Hat promised to recruit another software company to fill its vacated office. This week, Red Hat delivered on its promise.

Bandwidth.com is moving in, all the way from … Cary.

Written by

Jon Sanders (twitter.com/jonpsanders) is Director of Regulatory Studies at the John Locke Foundation. A columnist for TownHall.com, Sanders has also been published in The Wall Street Journal, National Review, ABC News online, FrontPage Magazine, the San Francisco Chronicle, The Freeman: Ideas on Liberty, the Philadelphia Inquirer and numerous newspapers throughout North Carolina. A native of Garner, N.C., Sanders has been an adjunct instructor in economics at North Carolina State University, and he holds a masters degree in economics with a minor in statistics and a bachelors degree in English literature and language from N.C. State.

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