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And if you give food to raccoons, they won't come back

From the Toronto Star:

More money for GM despite layoffs, McGuinty says:

Premier Dalton McGuinty says Ontario will give General Motors more money for new projects, despite thousands of layoffs announced by the automaker.

GM wants the Ontario and federal governments to contribute about $140 million towards a new engine plant in St. Catharines, Ont., and a new research centre in Oshawa.

GM has received about $250 million in provincial money, and recently announced layoffs of 1,400 workers in Windsor and about 900 in Oshawa.

But McGuinty says Ontario is still competing with U.S. states to land new automotive projects and must be prepared to pony up some cash.

Why do governments still think that they can win this game?

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Comments

What game is it you think they are playing?

Because the game is not to save jobs but to get re-elected.

For once you are on the same page as the Marxists.

http://rppe.wordpress.com/2008/05/26/givebacks-and-handouts-are-not-a-viable-model-for-the-big-three-unions-or-government/

The game is "Prisoner's Dilemma". If the governments of all prospective plant locations refuse to provide a financial incentive to the corporation looking for a bribe to locate their plant, they will benefit on average. If any capitulate they will lose on average.

All for one, one for all. In solidarity is strength. Chain is only as strong as its weakest link. Thank god for the invention of social science because now to the list of true clichés we can add the prisoner's dilemma. Has any received a faux Nobel for that bit functionally rendered folk wisdom yet?

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