Wisconsin’s Economic Cautionary Tale

[eridani]

http://www.nationofchange.org/2015/07/30/wisconsins-economic-cautionary-tale/

Much of the cash flowed to Walker’s political allies. According to a new report by the left-leaning One Wisconsin Institute, 60 percent of the $1.14 billion given out by the WEDC went to firms connected to Walker’s campaign contributors — that includes more than $2.1 million those donors have given Walker’s election campaigns directly.

Had the taxpayer largesse significantly boosted Wisconsin’s economy, perhaps the financial management problems and the allegations of cronyism could be downplayed.

But Wisconsin’s economy has suffered under Walker. As Bloomberg News reported, “Wisconsin ranked 33rd among U.S. states in economic health improvement during Walker’s first term” with the state only “a little more than half the 250,000 private-sector jobs that Walker promised during that time.”

Those results, though, have not deterred Walker: His most recent budget proposed to slash $300 million out of higher education funding and spend roughly the same amount to help finance a new arena for the Milwaukee Bucks. One of the members of the investor group that owns the NBA team is the national finance co-chairman of Walker’s presidential campaign. Walker pushed the subsidies despite a widely cited 2008 study by researchers at the University of Maryland and University of Alberta, which found the “overwhelming preponderance of evidence” shows “that no tangible economic benefits are generated by these heavily subsidized professional sports facilities.”

As Walker’s record faces intensifying scrutiny during his presidential campaign, his free-market rhetoric may conflict with his embrace of market-distorting subsidies for private businesses. Particularly in the Republican primary, conservative candidates and groups will have an opportunity to spotlight Wisconsin as an illustration of why they crusade against corporate welfare.

Walker, of course, may try to shift the blame for Wisconsin’s troubles — but the facts, stats and policies tell a clear and compelling story about why states cannot rely on subsidies as a tool of economic growth.