Contact:   Amy Frantz

319-385-3462

          Market Should Determine Economic Winners 

            Mt. Pleasant, IA – Government should focus on improving the business climate for all businesses instead of providing economic incentives for selected businesses.   That’s the conclusion made by Public Interest Institute Research Analyst Amy Frantz.   Frantz examines the issue in a November INSTITUTE BRIEF. 

          Frantz argues that government funded exonomic development programs are unfair to existing businesses.   Frantz says often these existing businesses must fund programs for other competing businesses, that receive preferential treatment provided by economic development programs.  

          Frantz says government should concentrate their economic development efforts on creating a climate that is more conducive for new business startups and existing businesses.  She says increased government spending on targeted programs does not guarantee greater gains in jobs and personal income. 

          Frantz concludes by saying government funding economic development allows the government to pick a lucky few to receive benefits, forcing others tax-paying businesses to bear the costs.  She says governments should stop picking the winners and let the market determine the winners. 

        For additional information on this INSTITUTE BRIEF, or any other Public Interest Institute publications, you may contact PII at:  (319) 385-3462 or log on to the PII web site at:  www.limitedgovernment.org.

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