An on-line article from Business Week questions whether subsidizing Big Box retailers for development results in net gains in jobs and overall retail increases.
One paragraph reads as follows:
“A recent study, however, indicates that subsidizing retail development produces neither job gains nor new tax revenue. Earlier this year a consortium of local governments in the St. Louis metro area found that cities and counties in the region had diverted more than $5.8 billion in public tax dollars to finance private development. More than 80 percent of these funds supported the construction of new chain stores and shopping centers.
Yet the region has seen virtually no economic growth. “The number of retail jobs has increased only slightly and, in real dollars, retail sales per capita have not increased in years,” the authors of the study wrote, noting that many of the region’s municipalities are now broke. According to the study, more than 600 small retailers have closed in the St. Louis metro area. The resulting job losses have offset the job gains from the new development.”
The link to the entire article in here.
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