In part, on the false “multiplier” effect that Govt programs supposedly have:
In any auction, the winning bidder may pay more for something than it is worth. That is especially the case in this kind of auction — in which government entities compete with one another in offering tax breaks to a rent-seeking corporation (i.e., one looking for public assistance for private gain) that is trying to get as much as it possibly can from government.
The fatal flaw here is the deeply ingrained habit of regional economic development agencies and other government entities of assuming (falsely) that a public investment of X dollars will yield about 2X in indirect benefits — in addition to the job creation and economic growth that come from the investment made by the rent-seeking company.





