In Defense of Incentives

All the candidates for Governor – Democrats and Republicans – now say they support Governor Easley’s veto of the Goodyear incentives bill.



Are incentives that politically radioactive?



I’m not sure they are. But the supporters of incentives are doing a damn poor job of making the case.



The way to win the argument is to take it from the general to the specific. Confront the critics: If you oppose incentives, tell me which jobs you don’t want North Carolinians to have.



Incentives first became a factor when Governor Hunt started his third term in 1993. North Carolina was trying to land a Mercedes plant. Mercedes told the state that its decision would not be incentive-driven. Hunt and the industry-hunters took the company at its word, and North Carolina offered nothing beyond the usual enticements of specialized skill training and site assistance. Then Mercedes took Alabama’s incentives offer.



The fact is, you don’t land companies like that today if you don’t offer incentives. It’s nice to be a purist and say North Carolina shouldn’t offer corporate prospects anything but our very own wonderfulness. But that’s living in a dream world. We either compete, or we lose.



Now, the Goodyear bill is a bit different. That’s not about bringing in new jobs. It’s about holding on to existing jobs.



But how many Goodyear employees do you think oppose the state doing whatever it takes to keep their jobs here?



Let’s see whether somebody takes up what seems like a losing cause and makes it a winner.



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Gary Pearce

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In Defense of Incentives

All the candidates for Governor – Democrats and Republicans – now say they support Governor Easley’s veto of the Goodyear incentives bill.



Are incentives that politically radioactive?



I’m not sure they are. But the supporters of incentives are doing a damn poor job of making the case.



The way to win the argument is to take it from the general to the specific. Confront the critics: If you oppose incentives, tell me which jobs you don’t want North Carolinians to have.



Incentives first became a factor when Governor Hunt started his third term in 1993. North Carolina was trying to land a Mercedes plant. Mercedes told the state that its decision would not be incentive-driven. Hunt and the industry-hunters took the company at its word, and North Carolina offered nothing beyond the usual enticements of specialized skill training and site assistance. Then Mercedes took Alabama’s incentives offer.



The fact is, you don’t land companies like that today if you don’t offer incentives. It’s nice to be a purist and say North Carolina shouldn’t offer corporate prospects anything but our very own wonderfulness. But that’s living in a dream world. We either compete, or we lose.



Now, the Goodyear bill is a bit different. That’s not about bringing in new jobs. It’s about holding on to existing jobs.



But how many Goodyear employees do you think oppose the state doing whatever it takes to keep their jobs here?



Let’s see whether somebody takes up what seems like a losing cause and makes it a winner.



Click Here to discuss and comment on this and other articles.

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Gary Pearce

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