Category Archives: Economic development

Drawing the Wrong Conclusion XIV: the can’t-compete-with-lower-taxes edition

We learned this week that North Carolina offered the mad bribe of $107-friggin’-million in economic incentives to get Toyota to locate its North America headquarters in Charlotte, but lost. Who won? Texas, with the relatively small bid of $40 million. How on earth did North Carolina, offering over two-and-a-half times as much as Texas inContinue Reading

Federal study: Hydraulic fracturing safe to proceed in California

The report, commissioned by the federal Bureau of Land Management, investigated possible effects of well stimulation technologies (WST) in California. It points out that potential energy resources are at shallower depths in California and normally require vertical rather than horizontal drilling and fracturing. The shallower depths made possible groundwater contamination more of a concern; however,Continue Reading

Burr tours corporate welfare recipients to tout corporate tax breaks, fails to draw the obvious lesson

The obvious lesson is, as I’ve stated over economic incentives programs are a tacit admission by state policymakers that lower taxes and regulations would attract more industry to North Carolina. The question then becomes: Why do it just for select industries? Why not lower taxes and regulations across the board? and over at the heartContinue Reading

A ‘very difficult’ business: low-priced retail serving poor communities

Some folks are so ignorant of markets that they think selling quality products at low prices in convenient stores such as Roses is “exploitative.” — Michael Munger, Duke University professor There is a debate going on in Southeast Raleigh over Variety Wholesalers bringing a grocery store and a Roses to the site vacated by Kroger.Continue Reading

More N&O-nomics: Government spending drives economic growth

There are several known tenets of N&O-nomics, such as: tax cuts don’t stimulate economic or employment growth cutting the sales tax leads to unemployment (after a two-year lag) overregulation is good for business and tourism hiking the minimum wage would stimulate the economy outsiders’ perception of the North Carolina’s “progressive image” is key to the state’sContinue Reading

Immoral: opposing conservatives so much that you deliberately hurt the poor

When Kroger announced in 2012 that it was closing in Southeast Raleigh, the community was apoplexed. The area is considered a “food desert,” which is “an urban low-income area where the poverty rate is at least 20 percent and at least 33 percent of residents have low access to a supermarket or large grocery store.”Continue Reading

Not to pick on Raleigh

Because it’s hardly just Raleigh. Other places — Charlotte, Miami, on down to Ocean City, Maryland — like the big, shiny numbers and are “not as concerned about the validity of those numbers.” Earlier this week, the Wall Street Journal published a similar example. Robert J. Caprara’s “Confessions of a Computer Modeler” included the followingContinue Reading

Raleigh marathon gets IMPLAN-inflated

Read about it in my newsletter today. A snippet: The paper reported that the Carolina Hurricanes had an estimated economic impact per game of about $1 million. The average home game attendance was just shy of 18,000 fans (17,971). Bear those figures in mind when reading about an economic impact study of Raleigh’s Rock’n’Roll Marathon.Continue Reading