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Clawing Back State Aid Given To Companies That Later Leave For China
ResumeA new study in this month's progressive, online journal "Democracy," finds that each year, cities and states together give away $50 billion in incentives to get companies to move to their communities or to encourage them to stay. We take a look at what happens once a company that's received incentives decides to pick up and leave.
That's what happened in the case of Evergreen Solar, a company that announced this month it would close its $340 million dollar plant in Devens, Mass., lay off 800 people, and move operations to China. Massachusetts gave Evergreen Solar $58 million in state aid, and through a state clawback provision, will get back $3 million. We speak with Massachusetts State Senator Jamie Eldridge, about whether the clawback is too lenient.
This segment aired on January 26, 2011.