Clawing Back State Aid Given To Companies That Later Leave For ChinaPlay
A 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.