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Jury hears Trump and Cohen Discussing Hush-Money Deal on secret recording; Nature-based solutions help solve Mississippi River Delta problems; Public lands groups cheer the expansion of two CA national monuments; 'Art Against the Odds' shines a light on artists in the WI justice system.

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President Biden defends dissent but says "order must prevail" on campus, former President Trump won't commit to accepting the 2024 election results and Nebraska lawmakers circumvent a ballot measure repealing private school vouchers.

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Bidding begins soon for Wyoming's elk antlers, Southeastern states gained population in the past year, small rural energy projects are losing out to bigger proposals, and a rural arts cooperative is filling the gap for schools in Pennsylvania and West Virginia.

Study: Spending on Education & Infrastructure = Prosperity for MA

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Friday, August 20, 2010   

AMHERST, Mass. - You can't outsource bridge construction work in Massachusetts to China. That's one reason a new study shows that state investment in infrastructure and education is more effective in creating jobs and prosperity than providing tax cuts and incentives for businesses. The new study, from the Political Economy Research Institute at the University of Massachusetts, confirms many earlier studies, report author Jeffrey Thompson says.

"The benefits from investing in education infrastructure produce long-lasting impacts on the productivity of the economy. You employ people in the short-run, and you also build workers' skills as you build elements of the infrastructure that actually lower the costs to firms."

The study concluded that each million dollars spent by the state of Massachusetts on education - including early childhood, K-12 and higher education - creates between 27 and 30 jobs for teachers, custodians, drivers and other kinds of workers. The study also noted that an educated workforce attracts business.

Thompson, a research economist, says that instead of making these investments, state policymakers too often turn to corporate tax breaks to lure businesses, and offer public subsidies to employers who promise to hire Massachusetts workers. He says $1.7 billion in tax subsidies in fiscal year 2010 was money not well spent.

"The pot has been sweetened by the state, but it doesn't actually change the behavior of the firms. There's a lot of skepticism in the research findings about whether these incentives actually change the behavior of companies."

Infrastructure spending is especially cost-effective, he points outs, because it often brings in federal dollars as well. Evidence reviewed in the study shows that in Massachusetts, 51 percent of bridges are structurally deficient or functionally obsolete, and over 40 percent of roads are in poor or mediocre condition.






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