SNEWS Topic: Economic incentives by governments for big retailers -- good or bad?

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Forum Index >> Business practices, challenges, issues and concerns >> Economic incentives by governments for big retailers -- good or bad?

We'd like to know what you think about economic and other incentives provided by government entities to entice and secure businesses such as Cabela's to build or locate in a particular region. Cabela's has stated that the state support and incentives are more than justified in return for the peripheral development Cabela's complex will attract, the millions in sales tax revenues that will be produced, and the jobs it will bring to the area. On the plus side, the clout Cabela's has resulted in flood control levee construction being sped up in Indiana, which has locals more than ecstatic as it will mean by 2009 flood insurance each has to carry will become much cheaper to carry. And there is little doubt that one can point to increased payroll and sales taxes as well as a host of other more immediate economic benefits. On the other hand, local retailers can and have argued in numerous cases that they are being unfairly treated as no incentives are being offered to them. What happens when those retailers get squeezed out, perhaps closing down. What is the economic impact there – or is it so insignificant in the long term it really doesn't matter? Is this a case where size really does matter?

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