High Unemployment States Suffer From the Worst Crony Deals

The evidence continues to pile up: corporate cronyism is bad for state economies. Studies examining the state-level impact of corporate connections to government officials confirm what seems somewhat obvious — that awarding special tax breaks and subsidies to those businesses with the best connections to government officials is an inefficient and ineffective way to use the power of government to create economic growth. So why does cronyism continue to exist? Put simply, it's good politics. Researchers at Northwestern and Georgetown University looked at the impact of political contributions on state-level subsidy awards, discovering that contributions made a business far more