Adapted From Robert Whitcomb's "Digital Diary,'' in GoLocal24.com
Apple says it plans to build another corporate campus. It also says it will hire another 20,000 workers, in part because of the new U.S. tax law, which cuts corporate income taxes. (Not all of the windfall will go to investors in the form of stock buybacks and dividend increases!)_
Of course, Apple’s announcement means that various cities and states around America are already looking into how they can bribe the Cupertino, Calif., company to build its new campus in their jurisdiction. Presumably vast tax breaks, to be subsidized by the individuals and businesses already there, will be offered, along with very expensive physical-infrastructure improvements. As with Amazon, Greater Boston (which you might say now sort of includes northern Rhode Island) would be in the running because of the huge technology complex there. But would such legal bribery be worth it for the macro-economy of Greater Boston?
Local politicians’ and some business leaders’ obsession with luring huge, rich, sexy tech companies may be popular in the short term but the diversion of so many public resources to a few extremely profitable big companies could have a very big long-term cost. The problems of General Electric that were revealed after it was lured to set up its headquarters in Boston provide a useful caution sign.