Advocates counter that the concern is exaggerated. Indeed, economic development programs often end up nurturing traditional government functions. For example, they can accelerate infrastructure projects. In many parts of the country, community colleges and technical institutes, the bricks and mortar of the nation's technical training system, have grown along with business incentives. Tax revenue lost from tax competition is at least partly offset by increased taxes from other sources.
Government has a lousy record in picking business winners.
State governments are throwing billions of taxpayer dollars to attract plants of industrial behemoths from other states or countries. Public policies geared toward streamlining the tax code and investing in the workforce would benefit all businesses rather than a favored few. In addition, more than ever before economic wealth is being created by research, discovery and innovation as the Industrial Era gives way to the Information Age. A skilled labor pool. A major airport.