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United Airlines announced its competition to select a town for a new billion-dollar aircraft-repair base.
United Airlines announced its competition to select a town for a new billion-dollar aircraft-repair base. The bidding for the prize of 7,000 jobs was fast and furious, with Orlando offering $154 million in incentives and Denver more than twice that amount. Kentucky’s governor angrily rescinded Louisville’s offer of $300 million, likening the bidding to “squeezing every drop of blood out of a turnip.” What are the ethical, legal, and economic implications of such location bidding wars? Who pays for such giveaways? Are local citizens allowed to vote on offers made by their cities, counties, or states? Should there be limits on these incentives?
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