University of Southern California

Center for Effective Organizations

News

The Right Way to Create Jobs in L.A.?

L.A. Weekly reported (January 20, 2010) on a proposed deal by L.A. city government to create a small number of additional jobs in Los Angeles (between 30 and 74 jobs) - by essentially luring them away from South Gate, a community less than 4 miles away from the L.A. city limits, through millions of dollars of loans and land given to a small factory.

Alec Levenson was quoted in the article. From his research, Levenson has seen that development is generally better achieved by updating and improving the infrastructure in areas of town that businesses have heretofore shied away from. These kinds of improvements substantially create a better environment in which to do business. Levenson said that "Subsidizing developments directly is almost always a losing proposition from a taxpayer's perspective."

Read the whole story, Good Money After Bad: Should L.A. Taxpayers pay $40,000 to Steal $20,000 Jobs from South Gate? here.

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