JLF lead man John Hood makes an appearance in the Winston-Salem Journal’s follow-up on Dell plant’s uncertain future:
Hood said that the latest production possibilities for Dell “underlines why it is unwise for governments to base their fiscal policies around the predicted futures of single companies.”
“In competitive markets, things change, sometimes rapidly and unpredictably,” he said. “Rather than negotiate big incentive deals with particular firms, policymakers should focus on improving the business climate and infrastructure that affect all businesses, large and small.”
Note the spin is Dell’s incentives are performance-based, so — in theory —- the government won’t even lose the upfront money if the factory is closed or is sold. All I have to say is good luck with that.
And — just curious — how does the prospect of support businesses springing up around the Dell plant look now?
On a seemingly unrelated note, Hoggard naysays New Bridge Bank Park’s 2008 attendance, citing (my neighbor) Ann Stringfield’s research casting doubt on stadiums’ economic development potential:
One of the other trends that Anne’s “naysayer” research uncovered was that new stadiums always enjoy tremendous attendance growth for up to eight years after they are built. But then, slowly but surely, the crowds begin to shrink back to pre-new stadium levels.
Although the Grasshoppers only missed a fourth year of record attendance by 331 fans this season, it was undeniably not an increase. Only time will tell if this season was an earlier-than-usual beginning of the historical trend toward fewer and fewer paid ‘butts in seats’ commonly experienced by other new stadiums throughout the nation.
Don’t get me wrong, I enjoy New Bridge Bank Park, but Greensboro’s taxpayers didn’t fork over millions to build the stadium, unlike Winston-Salem’s taxpayers, who are forking over millions for their new downtown stadium. But I recognize the reality that development around the New Bridge has been non-existent in the four years the park has been open.
Winston’s leaders ‘mixed-used’ development around new stadium to sell the idea. Considering the Dell plant provided real jobs — and look what’s happening — I’d say Winston-Salem’s decision to support the stadium is definitely unwise fiscal policy.
