There's a clear answer to the terrific question that the North Dakota Legislature asked. But on a national basis, they still might be bad policy, and here's why. That's a fancy way of saying they'll shop around to get what they want at the lowest price. So, naturally companies respond. Some pay attention to the effect of their decisions on their home community.
People shop in different ways, too.
But over time, as Wal-Mart, Target and other discounters' successes show, price is a very powerful motivator. Economic developers know this lesson as well. Because every other community is doing it. And every other community is doing it because price strategies work. That's why North Dakota was right to follow suit this year and add more money to its development fund.