Across America, states are taking federal dollars meant to support the recovery from the COVID pandemic and using them instead to fund massive economic development subsidy deals. In a column in The Hill today, CEA President John C. Mozena and Mercatus Center Senior Research Fellow Michael D. Farren had a simple message: "We hate to … Continue reading Op-ed in The Hill: Frustrated by a corporate handout ‘Groundhog Day’? Blame the American Rescue Plan.
CEA Comments on Federal COVID Relief Rules
One of the more controversial provisions of the massive federal COVID relief American Rescue Plan Act (ARPA) is the prohibition against states offsetting tax cuts with federal bailout dollars. Many viewed these provisions as violations of basic principles of federalism, and the issue is being worked out in the courts. In general, the CEA is … Continue reading CEA Comments on Federal COVID Relief Rules
Article in City Journal: Back to Basics for NYC
New York City's economic development model was already out of date even before the pandemic accelerated the broad move away from the workforce model of big offices in big buildings filled with lots of well-paid people working at expensive desks. That hadn't been keeping the city's leaders from doubling down on expensive subsidies, though, writes … Continue reading Article in City Journal: Back to Basics for NYC
Mercatus/CEA Paper: Federal Pandemic Relief Could End the Interstate Economic Development Arms Race
In a working paper published by the Mercatus Center at George Mason University, Mercatus Research Fellow Michael Farren and Center for Economic Accountability President John Mozena propose that states be required to end targeted economic development subsidy programs as a condition of receiving any federal COVID-19 "bailout" of state finances. Farren and Mozena note that … Continue reading Mercatus/CEA Paper: Federal Pandemic Relief Could End the Interstate Economic Development Arms Race