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Something New or More of the Same in the Bidding Wars for Big Business?
Author(s) -
McCarthy Linda
Publication year - 2015
Publication title -
growth and change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.657
H-Index - 55
eISSN - 1468-2257
pISSN - 0017-4815
DOI - 10.1111/grow.12089
Subject(s) - bidding , neoliberalism (international relations) , recession , incentive , state (computer science) , context (archaeology) , economics , political economy , economy , market economy , macroeconomics , paleontology , algorithm , biology , computer science , microeconomics
The economic downturn that began in 2007–2008 was blamed by some commentators on neoliberalism and pro‐business policies. So we might expect U . S . state and local governments to have responded with policy changes affecting their neoliberal economic development strategies. Based on this assumption, this paper is a theoretically informed examination of recent high‐profile bidding wars in W isconsin. The highest profile example was in 2009 when G eneral M otors chose a plant in M ichigan over W isconsin and T ennessee for a new small car line. W isconsin's Commerce Secretary characterized M ichigan's $1.2 billion incentive offer as “absolutely crazy” (compared with his state's $409 million offer!). My main research question is how have W isconsin state and local governments adjusted their neoliberal economic development efforts in these bidding wars given the recent economic downturn and weak economy? This paper uses the largest incentive offers in W isconsin during the tenure of the current and previous state governors within the context of ten themes drawn from the literature to problematize the neoliberal policy of bidding for big business. It concludes by considering the implications for economic development policies.