We were honored to have our our founder and patriarch, Angelos Angelou, sought for input on an article in “The Economist” magazine. It is a piece on the effectiveness and necessity of subsidies, tax breaks, and land grants to lure economic development and job creation.
The reference is to an AngelouEconomics comprehensive analysis conducted in 2012 that demonstrated that there is far less evidence that subsidies solidify economic growth or development. The study concluded that growth and development are more closely linked to entrepreneurial concentration than subsidies. This has proved to be a far less glamorous approach for policy makers who prefer a single company bringing 100 jobs, as opposed to 10 companies creating 10 jobs. The underappreciated difference is that the larger companies are usually at stride, or have a very linear growth pattern, whereas small companies have the potential to grow quickly, or even exponentially.