You are special assistant to the governor of a southeastern U.S. state in which unemployment (especially in rural areas) is well above the national average. After nearly three years in office and elected on a pledge to attract industry and create jobs, the governor is concerned. Because he respects your moral stance on issues, the governor has come seeking your insights. A European automobile maker has just told the governor that your state is on its short list of potential sites for a new manufacturing facility. The facility is expected to employ about 1,500 people, with plenty of spillover effects on the wider economy. The governor informs you the European automaker expects significant incentives and concessions. The governor would like to offer some $300 million in tax breaks and subsidies in an effort to bring the new plant to the state.
15-5 What plan of action do you advise the governor to take?
15-6 Would the outlay be an appropriate use of taxpayer money? Explain.
15-7 Would you feel comfortable defending your advice if it were to become public? Explain.