When Google opened a major routing center in Lenoir, N.C., some community members complained that the town gave Google too much in the way of incentives, like sales-tax-free electrical power. Now Google seems to be giving back: the company is hooking up downtown Lenoir with free wireless Internet for the next three years. This is commonly known in economics textbooks as “enlightened self-interest.” (HT: Annitra Morrison) [%comments]
How to Get the Google Hook-Up
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Google can and will move elsewhere if need be so the townspeople should put up or shut up. In this economy giving google sales tax-free (not free not subsidized) electricity is not big a deal!
After Google opened an office in Pittsburgh, the city got Google Transit and nearly 100% street view coverage. I recently moved to LA, and Google-wise it was like moving back in time. I don’t want to weigh in on what (if any) incentives are reasonable, but it’s nice to have Google in town.
Free wifi for three years…and then what? Tax abatement forever?
Good for Google… I wish we had Google in Cinci
There is a better and better understanding that governments are in competition as a supplier to private firms.
A few years ago, the powers that be here at CitiMortgage (that’s Citigroup, and the mortgage bank) thought it would be great to send out “winter holiday season” cards with the line “A donation has been made in your name to ACORN, to help provide housing for low-income families.” There’s enlightened self interest, and then there’s providing rope to the hangman….
It is sad that “new” = scary to this day in the less urban parts of NC, but Google (and soon Apple) are changing perception for the better.
The “no taxes for companies who don’t need them” haters are giving way once they see the side benefits, support jobs, etc.
I’m the only elected official who voted against the local incentives. I’m glad Google is here, and I’m glad they’re doing things in the community (working with our local community college, funding “green” grants, etc.”). That still doesn’t justify redistribution of wealth from local taxpayers to large multinational corporations. Google has only provided about 100 jobs so far in a region that has lost thousands overseas in the furniture industry.