How much does Toyota pay in taxes in Kentucky or are we subsidizing the factory?
And it most often results in the Winner's Curse: the entity providing the greatest subsidies win's the "investment", but they give up so much in the process that the economic benefits are wiped out.
See: Tesla in Buffalo, VW in Ontario, FoxConn in Wisconsin.
Tesla in Sparks NV, BMW in Greer SC, or Mercedes in Alabama and SC? It seems like those have more than paid for themselves by now. In at least one of those cases, they've had huge regional impacts.
Ironically, you go to the website and there's a fake image of the factory, based on previous promises.
I can't speak to the others, but I'm sure there's some positive outliers!
Because when the government hands tax money over to profitable companies to "create jobs", you are inherently distorting the market.
>It seems like there are more successes than failures
Maybe, but I'm skeptical.
AFAIK - they got $3B in FUTURE benefits - of which none came to fruition.
Foxconn delivered nothing and also got almost nothing (~1% of that $3B).
Yeah - it was a dumb political stunt - and it unfortunately worked for the time. But it wasn't the massive financial disaster people think it was.
When everyone else is subsidizing you have to subsidize too or you lose.
https://www.kentucky.com/news/business/article143755074.html
Toyota has been moving ops to states with lower cost of living for awhile now. Toyota corp in USA shifted ops from CA to TX a decade back. Many workers hate or regret the move. C-level executives are excited because they pay less in state taxes. Probably even got a nice deal on the land.