• Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Blog Home
  • Topics
    • Keystone Press Releases
    • Politics and Government
    • Legislation
    • Nevada News
    • Tourism & Gaming
    • Rural Nevada
    • Business
    • Opinion
  • Membership
  • Contact Us
  • About Keystone Nevada

Keystone Nevada Korner

Welcome to The Keystone Korner The Official Blog of Keystone Nevada

Home » EDITORIAL: Handouts to a few won’t diversify Nevada’s economy

EDITORIAL: Handouts to a few won’t diversify Nevada’s economy

December 15, 2021 by Pauline Lee

Las Vegas Review-Journal Editorial, December 12, 2021

Taxpayer giveaways are the “bread and circuses” of economic development.

This month, the Governor’s Office of Economic Development gave nine companies $12 million in tax abatements. It bragged that these companies will create 469 jobs by 2024. Six of the companies are in Southern Nevada. They are expected to create 336 jobs.

Jobs are vitally important, of course. Gainful employment provides dignity along with an income to support one’s family. Having a job gives one a chance to build skills, which usually leads to higher-paying jobs with more responsibility. When people work, they’re usually creating products or providing services that create value for other people. Providing things people desire is how companies turn a profit in a free market. Jobs create the tax revenue that funds education, police and roads. It’s hard to underestimate the significance of quality jobs.

Jobs are also much needed. At 7.3 percent, Nevada is tied with California for the highest unemployment rate in the country. Pre-pandemic, 1.54 million people had a job in Nevada. As of October, 1.44 million were employed. That means 100,000 fewer people are employed than in February 2020.

In that context, a few hundred jobs isn’t something to crow about. It’s a reminder of how inadequate government is compared with a vibrant private sector. That’s especially true, because taxpayers in GOED’s latest handout spree, provided an average subsidy of $25,000 per job.

That’s not a sustainable way to build the economy. But despite the rhetoric about jobs, that’s not the point.

The main utility of handouts such as these is political. Gov. Steve Sisolak gets to look like he’s taking action. He gets to claim credit for “creating” jobs and solving the state’s economic woes. Giving away taxpayer dollars is a way to enhance his political popularity. Few people will ever know if these jobs are actually created. Complete data won’t even be available until after the 2022 election.

It’s not just Gov. Sisolak. Former Gov. Brian Sandoval created GOED during his first term. He said it would help diversify Nevada’s economy. Gov. Sisolak’s lockdowns exposed just how dependent Southern Nevada remains on tourism despite Gov. Sandoval’s efforts and numerous tax giveaways — some to large wealthy corporations — funded by taxpayers.

Handouts like these remain a distraction tactic, similar to how Roman emperors tried to appease the masses with food and entertainment. It would be much effective to provide a hospitable business climate for all than to pass out tax breaks to the favored few.

But then entrepreneurs, not politicians, would get the credit. No wonder so many politicians prefer giving away other people’s money.

Filed Under: Opinion Tagged With: education funding, goed, Governor's Office of Economic Development (GOED), jobs report, tax revenue

Primary Sidebar

Connect with Us

  • Facebook
  • Instagram
  • LinkedIn
  • Twitter
Bootleg Bistro
Bootleg Bistro Ad
SLLC_Keystone_Blog-Ad_300x500_10%-Off-Repairs_05.19.21
CIOServices Ad 300x500-100
BRH Keystone Ad JPEG
Willow_Manor
Keystone Corporation Nevada

News Topics

  • Keystone Press Releases
  • Politics and Government
  • Legislation
  • Nevada News
  • Tourism & Gaming
  • Rural Nevada
  • Business
  • Opinion

Rural Nevada

UPS and AVK America plan to expand in Douglas County

March 19, 2023 By Courtney Holland

Staff Reports for The Record Courier, March 17, 2023 United Parcel Service plans to build a new 168,000 square foot building in Douglas County, … [Read More...] about UPS and AVK America plan to expand in Douglas County

Redwood Materials gets $2 billion federal loan for mega battery facility near Reno

February 12, 2023 By Pauline Lee

by Jason Hidalgo, Reno Gazette-Journal, February 9, 2023 Redwood Materials just secured a commitment from the federal government for a $2 billion … [Read More...] about Redwood Materials gets $2 billion federal loan for mega battery facility near Reno

LETTER: Voting by conscience or from pocketbook?

January 31, 2023 By vrobison

Not everyone enjoys or is interested in politics, but given the number of retirees in the Moapa and Virgin Valleys, I would imagine there is … [Read More...] about LETTER: Voting by conscience or from pocketbook?

Amodei picked as chair for appropriations subcommittee

January 29, 2023 By The Ely Times

Nevada Representative Mark Amodei was appointed to serve as the Chairman of the Legislative Branch Subcommittee on the U.S. House Committee on … [Read More...] about Amodei picked as chair for appropriations subcommittee

Opinion

Hypocrite Biden blocks mineral mining his clean-energy goals require

March 24, 2023 By Pauline Lee

by Carrie Sheffield, New York Post, March 22, 2023 President Joe Biden claims he wants America to lead in “clean energy” production, but he’s again … [Read More...] about Hypocrite Biden blocks mineral mining his clean-energy goals require

OPINION: The ‘Green Amendment’ is well-intended — but that’s not enough

March 19, 2023 By Courtney Holland

By David Colborne, The Nevada Independent, March 19th, 2023 Supporters of AJR3, also known as the “Green Amendment,” want to protect Nevada’s … [Read More...] about OPINION: The ‘Green Amendment’ is well-intended — but that’s not enough

EDITORIAL: Property tax bill deserves a quick trip to the shredder

March 16, 2023 By Courtney Holland

Neal bill would drop the cap, impose a floor. By Las Vegas Review-Journal Editorial Board, March 15, 2023 The benefit of competitive political … [Read More...] about EDITORIAL: Property tax bill deserves a quick trip to the shredder

Tags

Adam Laxalt am post Build Back Better Business Business Columns Casinos & Gaming Catherine Cortez Masto Clark County Clark County School District Conventions COVID Department of Employment Training and Rehabilitation (DETR) Editorials Education employment Gov. Joe Lombardo Gov. Steve Sisolak Governor's Office of Economic Development (GOED) Housing inflation Inside Gaming Joe Lombardo Local Local Las Vegas Local Nevada lvcva mc-business mc-local mc-news mc-opinion mc-sports Nevada News NPRI Opinion Opinion Columns PAID pandemic Politics and Government Real Estate Insider Roe v. Wade Sports The Strip tourism Victor Joecks

Footer

Copyright © 2023 · Keystone Corporation - All Rights Reserved · Log in
Privacy Policy
By accessing this site, you are agreeing to our Terms of Use

The views, opinions and conclusions expressed by the authors of any article or post on the Keystone Korner are those of the author and do not necessarily reflect the opinions of Keystone Corporation or its officers and board members. Moreover, any reference to a person, party, product or entity does not constitute an endorsement or recommendation by Keystone Corporation or its officers and board members.