Why I Believe in Enterprise Zones
Because they can recover lost tax revenue and generate growth, enterprise zones are a viable method for creating growth sectors in urban economies where growth would not otherwise appear.
Enterprise zones are specially protected areas of a city reserved for business growth. They are traditionally created in areas of low growth and offer incentives to businesses locating there. The critics’ argument that the loss of potential tax revenue negates their value is specious. Enterprise zones offer the potential for growth where it had not previously been realized, thereby offering real, as opposed to speculative, opportunity for growth.
Last week’s Post article on growth in Washington, D.C.’s, Adams Morgan neighborhood offers tangible proof that the concept of enterprise zones can work for cities. The Post related that this area, once inhabited by prostitutes and drug dealers, was set aside as an enterprise zone after the 1960s riots and has continued to attract small businesses and entrepreneurs. Enterprise zone status has spurred a new wave of investment there and has attracted many middle-class residents.