The Richmond Times-Dispatch has generally doubted the effectiveness of corporate welfare, both in Virginia and at the national level. But in this editorial, they go off the free market reservation in the matter of the General Assembly’s creation of special economic zones aimed at luring defense contractors to the state:
We like it, and hope Gov. Bob McDonnell signs the bill.
That’s a change for the paper, though they admit that embracing a picking favorites strategy could have a downside:
The best news would be if the defense zones were to persuade officials to offer similar incentives — and rewards for existing companies — across the board.
That would be the best news, which makes it even more strange to see the paper embrace the picking favorites approach, when an across the board change would provide the maximum benefit.
Except this isn’t the strategy Virginia’s political class is likely to embrace any time soon.
If Gov. McDonnell signs the bill creating these special defense industry zones, it will add yet another layer to the economic zones already in place. Is your business involved in foreign trade? There’s a zone for that, and among its special powers are those which…
Now that’s what I call service.
If you have a high tech company, there’s a zone for you too, because Virginia and its local governments want “to encourage growth in targeted industries.”
But yet none dare call this central planning. Or state capitalism. But what if your business doesn’t fit either of those categories? Does this mean that Virginia isn’t looking out for your needs? Never fear, there’s still a zone for you, if you’re not too particular about the neighbors or the kinds of incentives you might be able to extract from the government:
Rent seekers everywhere can rejoice – there’s a zone to fit almost any need. But apparently even these broad, subsidy-laced categories weren’t enough, hence the new defense contractor zone.
It’s enough to make one wonder when enterprise zones for bloggers will be created (complete with special tax benefits for the purchase of Virginia-made pajamas).
Though I really shouldn’t give them any ideas, should I?
