Document Type

White Paper


University of Maine Bureau of Labor Education

Publication Date

Winter 2001

Publisher location

Orono, Maine

Abstract/ Summary

In the face of economic challenges that continue to face Maine and other states in a time of globalization and rapid technological change, economic development is widely seen as essential to the well-being of Maine's economy and to an increased quality of life for its citizens. However, the nature of Maine's economy, natural resource base, and geography creates a difficult dilemma for our state. This is the paradox we face: while some form of economic development is clearly imperative, the long-term misallocation of scarce economic resources in pursuit of this goal, though well-intended, may cause further harm to the economy and put much of the state's population in jeopardy. In particular, the revenues lost to Maine's public treasury through some largely uncontrolled tax subsidies represents a direct threat to Maine's future well-being, at the expense of more sustainable, long term investments in human resources and infrastructure.


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