economic development

Progressive Economic Development Policies: A Square PED in a Round Hole

March 12, 2021 // 0 Comments

By Pierre Filion (University of Waterloo), Laura A. Reese (Michigan State University), and Gary Sands (Wayne State University) | The story of Amazon’s aborted attempt to locate part of its second headquarters in Long Island City, New York is well known. To briefly recap, in 2017, Amazon announced an open competition for the site of a second headquarters representing perhaps the largest single economic development opportunity in history. The company offered the winning city a $5 billion investment and the creation of up to 50,000 well-paid new jobs. Two locations were selected in November, 2018 – Long Island City and Northern Virginia. Each location would see half of the total promised investment and half of the jobs. New York’s incentive package, valued at $3 billion, included the cost of public improvements as well as performance-based grants. On February 14, 2019, however, Amazon announced that it was canceling plans for this major investment in New York City. The company indicated that they were unwilling to proceed with the project in the face of grass roots and political opposition. Read More

Incentives and Austerity: How Did the Great Recession Affect Municipal Economic Development Policy?

October 29, 2020 // 2 Comments

By Sara Hinkley (University of California, Berkeley) and Rachel Weber (University of Illinois at Chicago) | After the Great Recession of 2007-2009, cities across the country were hit by a perfect storm of revenue declines, inadequate federal stimulus monies, and state efforts to displace budget cuts onto local governments. As a result, local governments found themselves making unprecedented cuts to public services and jobs. Libraries and schools were closed, social work caseloads rose exponentially, and even “sacred cows” like police and fire services were put on the chopping block as decision-makers pushed austerity responses. In most parts of the country, those cuts were never restored, even long after population and economic growth recovered. Read More