The Mosaic of Economic Development: Local Pieces of a National Whole (Commentary)

For many years, local economic development activities have been justified on grounds of job creation and tax revenue enhancement. Although increased employment and an improved tax base are reasonable goals, organizational and political conflicts can frustrate the success of a community-based economic development program. Local bankers, insurance and utility company executives, real estate brokers, developers and large landowners concerned with property values and stocks of local wealth support tax revenue objectives and real estate development efforts. Physical development strategies offer a high return for propertied interests of a community. Local labor, industrial and neighborhood groups, on the other hand, favor employment programs and business development. These strategies include business starts, expansion and acquisitions which have a significant impact on job creation and retention