High are the list of attitudes that lead to bad government is the desire to "do something." At the local level, this sometimes works itself out in economic development projects.
There's nothing wrong and plenty right with new jobs, new businesses, and new options for buying and selling goods and services. But government efforts too often slide over into favoritism, meaning that they make political and economic sense for some, at the expense of others.
The Allegheny Institute for Public Policy has exposed a lot of harmful "do initiatives" in the Pittsburgh area. Its blog, for example, has made several comments on a Tax Increment Financing (TIF) project in the Mount Lebanon area. (here and here). The project, the institute notes, "is just another example of how even a reasonable law intended to help the redevelopment of old industrial sites can be perverted by those who will look for any chance to get in the taxpayers’ wallet. What is excruciatingly sad is that local elected officials who should know better are aiding and abetting this misguided chicanery."
Of course, there is more than one way to misuse government. In a new policy brief (in PDF), the institute reminds us the Super Bowl champs of two years ago are in line for public money. "We learned there are plans afoot to arrange a state subsidy for the Steelers and their development team to build an amphitheater/retail/restaurant complex near Heinz Field. If approved by the Department of Community and Economic Development (DCED), the development team could be awarded up to $10 million over ten-years to assist with the project."
It's good to be connected, isn't it?