The Center for Economic Accountability exists to change the way Americans think and feel about economic development in their communities.

Across America, state and local governments hand out more than $100 billion a year in tax abatements, grants, loan guarantees, free land and other targeted economic development subsidies to businesses in the name of ‘economic development.’ They justify this massive exercise in corporate welfare by claiming that these subsidies are critical to job creation and economic growth, and that without them all the jobs and prosperity will go someplace else, to some other city or state that will pay more for them.

Most Americans believe this narrative. They believe that these government subsidies are helpful and important, and that their community is better off with them than it would be without them.

In other words, most Americans believe something that is simply not true. The reality is simple:

  • There is no evidence that economic development subsidies actually create jobs or grow an economy. Even the site selection industry’s own studies admit that government subsidies play a minimal role in companies’ decisions about where to build, and most would have made the same decision without the subsidy.
  • There is no evidence that cities or states that hand out more subsidies are any better off than those that don’t. The path to prosperity is reasonable taxes, simple regulations and a good quality of life, not targeted subsidies to big businesses and politically connected developers.
  • There’s plenty of evidence that so-called ‘economic development’ subsidies are actually politically motivated, driven by things like campaign donations and politicians’ desire to pose in front of the cameras at groundbreaking and ribbon-cutting ceremonies. In other words, these deals aren’t about creating jobs as much as they’re about making voters believe that politicians are responsible for creating jobs.
  • There’s also plenty of evidence that letting politicians and bureaucrats try to micromanage an economy causes far more problems than it solves. Cities and states all across America struggle every day to deal with the fallout from bad deals made years ago by long-gone elected officials.

That’s where the CEA comes in. We’re not a traditional research-based think tank. Instead, we’re educators, advocates and communicators who advance our mission by fighting misinformation with truth, and fear with facts.

This includes:

  • Engaging with researchers at universities, think tanks and other research institutions to ensure that our work is based on real-world evidence and hard facts, and helping spread their new evidence or insights to other advocates and stakeholders.
  • Assisting local partners on the ground across the country who are fighting back against corporate welfare and need our expertise, capabilities or other support.
  • Working with elected officials who want to reform their economic development programs by identifying potential policy reforms and helping them talk effectively about the issue to their constituents.
  • Assisting journalists in becoming more effective reporters on economic development deals by identifying the truly newsworthy components of the story, rather than just the parts the press releases want them to cover.
  • Being effective advocates in the media, on social media, at in-person events and through other communications channels.
  • Developing and testing messaging that connects with people, helping them understand why they should care about this issue and take it seriously as a threat to their community.
  • Developing and hosting high-quality collections of research and insights into economic development research studies, stadium subsidies and other topics.
  • Serving as a bridge between unlikely allies. Corporate welfare isn’t a right-versus-left partisan issue, and the most successful reforms have come from trans-partisan coalitions. As free-market advocates with connections and relationships with center-right organizations across the country, we have become a key connection point for coalitions that span the political and philosophical spectrum.

Perhaps most importantly, we’re an independent voice that can’t be intimidated into silence.

As an organization dedicated solely to economic development policy reform, we have no donors who support us on everything but this issue, or political allies who can hold other policy priorities hostage to our good behavior. That kind of pressure is a standard part of the crony capitalist playbook – which is why we designed an organization that was immune to it.

We can do all this thanks to the support of our generous donors; individuals and foundations who share our principled opposition to corporate welfare and crony capitalism. Now more than ever, we need your support as well. Please click here to make a tax-deductible donation today.

And if you think we could help you in any way — or if you think there’s something we should know about what’s going on in your community — reach out and start the conversation. We’re here to make a difference, and we’re always open to a conversation.