My little community wants to establish something called an "Economic Development Corporation," a 501(c)(3) entity that under some circumstances (but not ours) can glom onto a half-cent local sales tax. It has to operate under open-meeting and open-records laws like a governmental entity, but as far as I can tell it doesn't have any authority. There are said to be 700 of them in Texas already. They look to me like a sort of souped-up chamber of commerce, though I'm told that our local Chamber of Commerce doesn't do the same sorts of things at all.
Actually it's very hard to talk to the supporters about why an EDC would be a good idea. Luckily, ours apparently would be pretty low-risk, since it will have to subsist on modest handouts from local governments plus private donations, and will have no power that I can discover to make anyone do anything in particular. Most EDCs seem to operate pretty good websites with information of the sort that prospective employers would want, like demographics, available real estate, zoning philosophy, educational opportunities, tax abatements or other financial incentives, and links to local elected officials. I thought that was Chamber territory, but apparently not. Or, if it's Chamber territory, the Chamber doesn't have enough money and people to do it effectively. It's surprisingly difficult to get supporters to answer a question like, "Are you going to do what the Chamber does, but more of it and better because you'll have more money and staff? Or are you going to do completely different things, and if so, what?" They kind of look blank and say they're going to do "economic development." What does that look like? Well, it's development. Of the economy. I never understand these sorts of conversations.
On the other hand, I'd be pleased to see someone put together a good website with information that prospective employers would want to know. I've never understood why we don't have one already. You'd be amazed how hard it is just to find basic information about local codes and ordinances. Our local leadership is not what you would call wildly enthusiastic about the digital revolution.
Another question I found it hard to engage supporters on was, "How do we find out whether the 700 Texas cities who have EDCs experience better economic development than the many cities who don't?" I'm told I can easily get a list of the 700. Sure, but you see how my question is different? Not really. Well, the 700 cities worked really hard on economic development, which is obviously a good thing. Right, but concrete results? ... It's as though I were speaking a foreign language. It's just intuitively obvious that this kind of activity, whatever it is, is valuable.
Earlier this evening I managed to find a few articles nearly on point. One was a master's thesis that couldn't find any statistical correlation between imposition of a Texas EDC sales tax and anything identifiable as economic progress. The author admitted, however, that she was unable to put her finger on what people meant by economic progress: was it simple growth in key metrics like per capita income, or something to do with a qualitative change in economic activity? Either way, the pattern was murky. Another article confidently explained that you get economic development when you can attract and retain talent, but that's tricky, because it's the nature of talent that it can relocate whenever it wants, so you have to have quality of life. What's that? Whatever talent wants. Then there's probably something about making the environment business-friendly. That's actually the only part I can readily grasp: low taxes and regulations that are transparent and predictable. But then there is so little consensus on whether it's a good idea to attract businesses if you can't be sure they won't degrade quality of life, as they surely will if they're not heavily regulated! You can't trust those dang businesses! At the same time, the coolest little town ever won't last long if there aren't any jobs. It's a tough one. I remain skeptical that governments can help much. Maybe businesses can't either, but at least they employ people.
Well, as I say, the possibilities for mischief appear minimal.