@ganymede said in RL Anger:
I don't mean to start a political argument -- we can do that elsewhere -- but is there something inherently wrong with municipal corporations and/or townships or counties competing against one another to attract employers that will draw in much-needed commercial activity and income taxes?
I don't think it's a political argument per se since what peeves me is hardly limited to any one party, so I think it still falls within the scope of 'RL anger'.
But yes, I think there is. It's the part where different cities are racing to the bottom against each other - as if that does anyone but let slightly less water into the boat from one side than the other.
Almost by definition the gains a township stands to make from their association with large corporations like this is as small as possible; after all, if they had bargained harder they'd have lost the bidding war, since another municipality would have been able to offer a better deal.
Yes, there are considerable benefits to having a corporation around - well paid, smart people get pulled there, spending their income on local businesses. The positive impact though is significant reduced due to the concessions they need to make so that the company will choose them in the first place. All that's done is trying to replace direct taxation on these companies themselves with income taxes from their employees' salaries.
In the mean time not only them but everyone is deprived of extra taxes that would cover part of the impact the business has, and over time as the corporation's profit margins wise, everyone else's shrink. The fabled trickle-down effect in the economy is lessened; financial markers might be going up, but personal wealth is reduced for the majority. The middle class taking hits is never a good thing in the long run.
That's what I find inherently wrong, and why it annoys me.