Thursday, September 03, 2009

Problem: High vacancy rates. Solution: Encourage building

Sometimes dumb is just plain dumb. Guilford County Commissioners are contemplating a gift to the construction industry in the form of tax rebates for building or adding on to property. As District 3 City Council candidate George Hartzman points out, the Triad has a glut of space:

Retail Vacancies: 10.5%
Office Vacancies: 18%
Warehouse Vacancies: 22.6%

According to Forbes, Greensboro is the nation's fourth most vacant city.

Look, Commissioner Arnold, nice try. You get an A for good intentions but please, put the idea down and step away from the table. Incentivising the production of something already in oversupply earns you an F in economics. If the interest is honestly in trying to stimulate economic activity, give a tax credit to everyone and anybody who creates a job. The current plan is not economic stimulus, it is a stinky stew of narrow thinking and political patronage.

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