Municipal Economic Development Policy

841 Words Feb 26th, 2018 3 Pages
Economic policy at the sub-national level is often nonpartisan because these types of governments do not take on redistributive or allocation policy. Rather, they take on economic policies that most everyone agrees upon such as creating jobs or bringing in new tax revenue. (Kogan, 2014) These policymakers main focus will aim to increase revenue flows as well as the creation of jobs. When it comes to economic development, cities want to attract new businesses. With new businesses comes an increase in revenue via tax revenue. These new businesses also bring with them new jobs. When there are new jobs, there is a reduction in unemployment and poverty. One way municipalities aim to increase their tax revenues is by making themselves competitive amongst other municipalities. They want to be competitive to attract firms to locate or relocate within their limits. Policymakers increase their city’s appeal by offering tax credits and other incentives for the business to choose them. Policymakers believe if they cities can attract new firms by investing money they will come out on top in the end. In HBO’s The Wire, we see local policymakers deciding whether they should invest revenue in the expansion of a shipping port to bring in increased future revenue and also to make them more competitive with…