Over the weekend, I wrote about problems with tax subsidies for businesses intended to create jobs in Minnesota. Today, the Strib has a good story on one aspect of the state policy, the JOBZ program, which a state analyst said could cost state and local governments more than $100 million through 2015.
The article raises questions about how many businesses actually relocate in greater Minnesota because of the program (few), how good the jobs are (mainly low-paying), and what other factors might have a stronger influence on the decision (rent, space and available workforce).
Imagine walking into a store to buy a computer for work and the clerk hands you a $300 rebate form. You would've bought it at the regular price because it has everything you want, and you need it now.
Do you accept the rebate? Of course. Do you call for an end to rebates? Of course not. Do others who wouldn't otherwise have bought a computer here buy one at this store? Possibly, but a manufacturer offers rebates at all its dealers' stores. It knows it's not good business to favor some dealers over the others.
Gov. Pawlenty wants to expand his rebate program. You won't hear many in the business community telling him to apply the brakes.
