Business grants, particularly those given to huge corporations that make multi million dollar profits, often arise ire of the ordinary citizens, taxpayers. After all, this is their money being given to these giant businesses with capitalisation value in billion of dollars. But, like it or not, the US federal government, and for that mayyer many governments around the world, provide these big bussinesses with grants going into hundreds of millions. And, both the grantor and the beneficiary are adamant that this is very good for the nation and the community at large.
How is it beneficial? Well, perhaps if both parties did a better job explaining to the avaerage citizen how it helps him, there would be less resentment, sometime undeserved.
For example, if a large car manufacturer wants to shift its assembly plant from Japan to the US state of New Jersey, it contacts the state government first, asking what kind of incentives will they ensure, to tempt them to make the move. Quite possibly, they will contact other states, and even countries.
They're seeking payroll tax concession, land tax reduction, company tax preferential rates, etc. They may even ask the local government to contribute to the establishment costs directly.
And before you start protesting loudly, let me tell you that this practice is very common nowadays.
If one local administration refuses to cooperate, another will. Why? because of the long term benefits to the local economy. Many new employment opportunities, greater economic growth, expansion of the related industries, reduction of the unemployment rate, rejuvenation of decrepit areas, flow of the latest technology, etc. Yes, it pays to get a huge concern to invest their resources into a local project. It will stay there for the long time, and so will the positive effects that all residents will experience.