Comments on: Subsidizing Real Estate Developers Ruled to be Clearly in the Public Interest http://www.coyoteblog.com/coyote_blog/2008/05/subsidizing-rea.html Dispatches from a Small Business Mon, 22 Mar 2010 04:16:47 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: MJ http://www.coyoteblog.com/coyote_blog/2008/05/subsidizing-rea.html/comment-page-1#comment-11009 MJ Wed, 07 May 2008 09:00:08 +0000 http://coyote-blog.com/wordpress/2008/05/subsidizing-rea.html #comment-11009 <p>It is doubtful that the mall development will increase output in the region by even the 1 percent or so that the developers claim. Since retail must serve an existing population and, by default, households face budget constraints, it is unlikely that this mall will generate <i>any</i> new net activity.</p> <p>Unfortunately, the Mall of America in the Twin Cities does not understand this and neither does the MN legislature, which is why they are paving the way for a much larger subsidy ($379 million) for that mall's expansion plans, including paying for a $200 parking ramp. Without getting too much into the details, the subsidy scheme will actually force the mall's competitors in the region to finance much of this largesse. A truly sad situation all the way around.</p> It is doubtful that the mall development will increase output in the region by even the 1 percent or so that the developers claim. Since retail must serve an existing population and, by default, households face budget constraints, it is unlikely that this mall will generate any new net activity.

Unfortunately, the Mall of America in the Twin Cities does not understand this and neither does the MN legislature, which is why they are paving the way for a much larger subsidy ($379 million) for that mall’s expansion plans, including paying for a $200 parking ramp. Without getting too much into the details, the subsidy scheme will actually force the mall’s competitors in the region to finance much of this largesse. A truly sad situation all the way around.

]]> By: Wes Johnson http://www.coyoteblog.com/coyote_blog/2008/05/subsidizing-rea.html/comment-page-1#comment-11008 Wes Johnson Wed, 07 May 2008 03:40:33 +0000 http://coyote-blog.com/wordpress/2008/05/subsidizing-rea.html #comment-11008 <p>Don't you mean LESS credulous?</p> Don’t you mean LESS credulous?

]]>