Governments compete with each other to attract businesses to create jobs in their jurisdictions. Some examples of these subsidies are given in the “Some Examples of Subsidies” OM in Action. There is no doubt that some of these have helped keep jobs in Canada. However, some people argue that subsidies are not in the long-term interest of taxpayers. For example, between 1982 and 2005, Pratt & Whitney' Canada, the largest recipient of government subsidies, received over $1.5 billion in low-interest loans and Bombardier received over $0.75 billion. However, they have repaid only a small percentage of the loans and at the same time are laying off thousands of employees. Also, there have been abuses. For example, Morgan Stanley' received tax credits from the Government of Quebec for opening a 300-employee software development centre in Montreal although 200 of them were working for a contractor, Compuware, in Montreal, and simply transferred from Compuware to Morgan Stanley. Another example is Videotron, which created a subsidiary and transferred 100 of its employees to it (without physically moving them) to take advantage of Quebec tax credits. Are government subsidies appropriate? Discuss.