Governor Paterson today announced an economic plan he’s calling “Bold Steps to the New Economy.” What’s bold about the plan is not immediately apparent; what’s new apparently boils down to $100 million in state grants to be doled out “over several years” to attract $1 billion in federal research funding.
Forget, for a moment, that this is the same governor who just agreed to a state budget featuring a record $6.1 billion a year in new state taxes and fees, which will add to what was already rated the nation’s second worst tax climate for business. And while we’re at it, let’s suspend any rude skepticism about the efficacy of government-directed investments as an economic strategy.
Will someone please explain again how a $100 million grants program, leveraging $1 billion “over several years,” will make a notable difference in a trillion-dollar state economy?
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