Google’s Job Scam

One of the most brazen business practices is the game of getting communities to bid against one another in order to subsidize the location of new businesses, or even worse, to blackmail communities by threatening to relocate their business elsewhere.  Now, the small, impoversihed town of Lenoir, NC is offering Google $212 million in benefits in tax breaks, infrastructure improvements, and other goodies over 30 years for an expected 210 jobs, more than $1 million per job.

You can read more at

Byrnes, Nanette. 2007. “The High Cost Of Wooing Google.” Business Week (23 July): pp. 50-56.

3 comments so far

  1. tom s. on

    I had not heard of this one. It follows their buildings in Iowa (http://whimsley.typepad.com/whimsley/2007/06/kindness_to_ele.html) and Oklahoma (http://www.theregister.co.uk/2007/04/23/google_penguins/) and more. I usually read Nicholas Carr on this (http://www.roughtype.com/archives/2007/04/the_real_web_20.php) . It sounds like a development to follow – I’m sure there will be many more of these.

  2. ak on

    I am not working for or related to google in anyway. But I’ve never heard of this kind of story (Google ‘asked’ local official for ‘incentive’). As far as I know, when google plan data center, they consider the cost of electricity first, then other cost factor. When it comes to hiring, I have heard story that they set up office where the star programmers are. (http://blog.searchenginewatch.com/blog/051215-151841) So, if a city does not have the thing google needs, they won’t bother no matter what. If a city has a willful thinking to ‘woo’ google, it has nothing to do with google, right?

    If these sort thing happened, it will be a big issue in tech forum like slashdot. But none i have heard of.

  3. mperelman on

    I appreciate the comments. Business Week is very clear that Google’s representative drove a very hard bargain with a disparate town.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: