Search

The economic downturn that began in 2007-2008 was blamed by some commentators on neoliberalism and pro-business policies. So we might expect U. S. state and local governments to have responded with policy changes affecting their neoliberal economic development strategies. Based on this assumption, this paper is a theoretically informed examination of recent high-profile bidding wars in Wisconsin. The highest profile example was in 2009 when General Motors chose a plant in Michigan over Wisconsin and Tennessee for a new small car line. Wisconsin's Commerce Secretary characterized Michigan's $1.2 billion incentive offer as 'absolutely crazy' (compared with his state's $409 million offer!). My main research question is how have Wisconsin state and local governments adjusted their neoliberal economic development efforts in these bidding wars given the recent economic downturn and weak economy? This paper uses the largest incentive offers in Wisconsin during the tenure of the current and previous state governors within the context of ten themes drawn from the literature to problematize the neoliberal policy of bidding for big business. It concludes by considering the implications for economic development policies. [ABSTRACT FROM AUTHOR]

This study assesses the impacts of local business incentives in the largest urban areas of Illinois, Michigan, and Wisconsin, three Midwestern states that share similar histories and settings. We assembled a unique dataset combining information on two types of incentives, tax increment financing districts and tax abatements, together with socio‐economic, geographic, fiscal, and spatial competitive characteristics for all of the municipalities in six metropolitan areas. The outcome measures include employment growth, establishment formation, and business relocation. The analysis extends knowledge of the effects of economic development incentives in two ways. First, we improve upon previous research by incorporating key factors in municipal decisions to offer incentives. Second, we add to limited empirical evidence concerning local incentives following the Great Recession. Variation in the use of incentives reflects not only local decision‐making but also differing fiscal capacities and situations of adaptation to adverse economic conditions, with some governments pulling back on incentives and others initiating new approaches to retain or lure businesses. [ABSTRACT FROM AUTHOR]