Jun 20, 2005
Eli Lilly earlier announced plans to build a factory to manufacture insulin in Prince William County, Virginia, close to Washington D.C. The plant was to employ 700 people.
Politicians in Prince William County and the state of Virginia offered the company over seven million dollars in public money – justifying this handout with the usual claim of "creating jobs." But in mid-June the business journals carried Lilly's decision to cut the size of the plant in half, push back the start date by two years and hire only 350 people.
Did state officials cut their handout to Lilly in half? No, they justified letting Lilly keep it all.
Elected officials in every state, every city and county do exactly the same thing – offer taxpayers' funds and tax cuts to companies, no matter how few jobs the companies add or even when the companies don't add any jobs.
The politicians claim they are helping with economic development. Of course, in their book, "economic development" is spelled p-r-o-f-i-t. And let jobs and city services be damned!