Letter on Subsidizing to Attract

Mr. Smith, has fallen behind on his work, he has asked you to help prepare a letter for a local business/economic project. Your local city is trying to attract a new garbage processing facility in an underdeveloped part of town. As part of the package of incentives for luring the facility’s builders, the city is offering an economic subsidy of $300,000 to help build the facility. Mr. smith also explains that your help on this business/economic project will only help you in your promotion to vice president.

in which you either to support or criticize the proposed $300,000 subsidy.

* Define subsidy.
* Identify the economic winners and losers of the $300,000 subsidy.
* Explain what your city will have to give up because of the subsidy and what it will gain in the long run.
* Discuss the pros and cons of the project.
* Conclude your letter by expressing your point of view.
* Propose another recommendation/incentive that will help the community agree on the above project.

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