The Rand Paul Countdown to 2016 Megathread

[Sheilbh]

Hasn't it largely been shown by economists that "enterprise zones" are basically a terrible idea?

I think they can help a lot in certain circumstances. For example if you've got an overbearing bureaucracy/permit Raj system they can help kickstart local economies, which can spread wealth through the country and catalyse reform. I think China and India are slight examples of that - they've helped the local economy and the national economy. Not sure they've caused enough national reform yet.

Edit: Having said that I'm not convinced they're a lot of use in places like the US.

[crazy canuck]

Hasn't it largely been shown by economists that "enterprise zones" are basically a terrible idea?

I think they can help a lot in certain circumstances. For example if you've got an overbearing bureaucracy/permit Raj system they can help kickstart local economies, which can spread wealth through the country and catalyse reform. I think China and India are slight examples of that - they've helped the local economy and the national economy. Not sure they've caused enough national reform yet.

Edit: Having said that I'm not convinced they're a lot of use in places like the US.

We had some good experience with them here in Vancouver for both the development of the Port and for holding Expo 86.  However in both cases they were work arounds for the then red tape that would have ensnared both projects rather than the financial concessions Berkut was addressing.

Long term those projects were great successes and helped create the political momentum to clean up the regulaltory enviornment for everyone.

[The Minsky Moment]

What Sheilbh is talking about is using EZs to carry out experimental reform of a planned economy, and/or to limit the political and economic fallout from a reform effort by initially containing it in space.
Dengist China provides a good demonstration that such use of EZs can be very effective under the right circumstances.

But that of course is different from their use in advanced market economies where really it is more as Berkut says - a poorly disguised regional resource transfer scheme.

[Sheilbh]

We had some good experience with them here in Vancouver for both the development of the Port and for holding Expo 86.  However in both cases they were work arounds for the then red tape that would have ensnared both projects rather than the financial concessions Berkut was addressing.

Actually that's an example that does work in the West. In the UK you just look at Canary Wharf and the Docklands. A combination of government backed finance, investment spending and regulation cutting with a strong executive-minister in charge. Often it can just be enough to get different councils to work together, which is a challenge in itself.

But I don't know if it can work for an entire city. Over here there's a philosophical argument on the right about this. George Osborne's a big fan of the idea of enterprise zones to help regenerate cities. Michael Heseltine, who was responsible for the Docklands redevelopment, says the biggest thing central government could do is devolve a lot more power to city halls.

[Savonarola]

I think they can help a lot in certain circumstances. For example if you've got an overbearing bureaucracy/permit Raj system they can help kickstart local economies,

Then Detroit is an ideal place for an enterprise zone.   

The problem with the Enterprise Zones that existed in Detroit were that they only addressed the state taxes.  The city taxes were still exorbitant and the city bureaucracy was still overbearing and corrupt.

[Neil]

Yeah, Ron Paul is fun as a troll, but you don't elect a troll to be President.

[Eddie Teach]

Yeah, Ron Paul is fun as a troll, but you don't elect a troll to be President.

Dubya kinda looks like one. The cutesy doll kind, not the Tolkien monster kind.