Public money spent on private business can be a gamble

Source: Jason Hidalgo, Reno Gazettte-Journal/ USA Today, July 30, 2012

… As founder and chairman of video game developer 38 Studios, Schilling convinced Rhode Island officials in 2010 to give his company a $75 million loan guarantee in exchange for relocating from Massachusetts. It was a public-private partnership that was supposed to bring in 450 new jobs and kick start a new industry that Rhode Island could grow. … The spectacular rise and collapse of 38 Studios serves as a cautionary tale about what can go wrong when public money is used to support private enterprise….. In some cases, jobs produced by companies being incentivized do not match expectations, said Thomas Cafcas, a research analyst who tracks Mid-Atlantic and Midwestern states for national policy resource center Good Jobs First….

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