I should add though, sometimes government intervention is warranted, such as FDR's New Deal. But, that's not quite the same as bribing profitable companies.\n\nOkay, but what's the alternative? Say that you're a state government which wants more investment and jobs in your state, but you have higher taxes than other states, or, say, very pro-union labor laws compared to other states. What do you do to attract companies? Do nothing, and companies will locate to the most advantageous areas. For difficult to find skills sets, like engineering, scientists, and financial experts, you might just swallow the high costs and be in the Bay Area, NYC, or Boston (or Toronto and Vancouver). But manufacturing isn't like that; skill sets are usually less important, and high taxes and unions more impactful. Become too much of a purist and you lose a lot of your blue collar jobs. I wouldn't want to be governor of New York or Michigan; they're a mess.