Over the past 10 fiscal years the Delaware Economic Development Office's Delaware Strategic Fund has awarded over $201 million to firms and organizations in Delaware. Over $126 million of the awards have been outright grants, while $38 million has been in the form of loans, almost $34 million in convertible loans, and the remainder in preventure and equity funding. Has there been a logic to this largess?
The answer is mixed...
...Recent data shows that last year across the U.S. state and local governments gave $70 billion to private firms and organizations in the form of grants, loans, and subsidies. While there are anecdotes about successful state coups landing large firms, there is no professional research literature evidence that these give always benefit state and local economies over time.
At the very least, there should be a coherent logic behind Delaware's Strategic Fund largess and there should be due diligence regarding subsequent compliance.
See link below to read complete article:
Complete Article
Dr. John E. Stapleford, Director
Center for Economic Policy and Analysis
Caesar Rodney Institute
No comments:
Post a Comment