We’re spending them for the jobs, not the environment. We want this industry, which will be relevant for at least a generation to be entrenched here. I used to fret about what we get for this tax we pay them until I understood better how money is created, destroyed and how that affects inflation. In a case like this, where a factory or 10 will be built in a place where there’s idle or low paid labor, where there aren’t significant resource constraints to building those factories, we should just print this money and give it to them because it won’t cause inflation. Giving them a tax exemption, printing the money and spending it where the tax would have gone otherwise is equivalent.
Pretty much the same reason why Quebec offers high subventions for R&D. This in turn attracts new companies and specialized employees. What the province pays in subventions they get back in attractive jobs.
We’re spending them for the jobs, not the environment. We want this industry, which will be relevant for at least a generation to be entrenched here. I used to fret about what we get for this tax we pay them until I understood better how money is created, destroyed and how that affects inflation. In a case like this, where a factory or 10 will be built in a place where there’s idle or low paid labor, where there aren’t significant resource constraints to building those factories, we should just print this money and give it to them because it won’t cause inflation. Giving them a tax exemption, printing the money and spending it where the tax would have gone otherwise is equivalent.
That would make more sense, and one can only hope that works out.
Pretty much the same reason why Quebec offers high subventions for R&D. This in turn attracts new companies and specialized employees. What the province pays in subventions they get back in attractive jobs.