The recent report on subsidies of $75 million or more from state and local governments to large corporations to attract or retain jobs and businesses stands in sharp contrast to how our nonprofit organization supports Philadelphia-area small-business owners (“The price of job-creation subsidies,” June 20).
In our view, the outrageous and shocking average of $456,000 spent per job in these so-called megadeals is an ineffective (or questionable, at best) way to create jobs.
According to the Aspen Institute’s FIELD initiative, which serves the microenterprise industry by providing research and resources, it costs our nonprofit between $6,156 and $8,438 to help a client create a job. In addition, we empower clients to create businesses in their neighborhoods — businesses that not only employ neighborhood residents, many of whom are low- to moderate-income, but which also contribute to the local economy by offering much-needed goods and services.
We hope state and local governments will choose to use tax dollars to fund community-based job creation efforts with equal enthusiasm to the vast amounts of public dollars used for megadeals subsidies, both in this region and nationwide.