Firms get breaks, leave townEvery kind of economic development isn’t necessarily good or smart. In particular, the practice of making excessive tax or zoning concessions to large corporations is fraught with potential for abuse.

It’s a complex matter. Citizens usually are left to trust legislators and others in power when the wheeling and dealing begins. Seldom is heard a discouraging word when executives, union bosses and legislators play.

Fact is, though, modern-day American conglomerates seldom have much loyalty to any city, state or nation. Their siting decisions can be bought, but frequently don’t stay bought for long.

Perhaps the prime recent example of this in the Pacific Northwest are the many favors granted computer chip manufacturers by the state of Oregon and its subsidiary governments. Like traveling carnivals, chip-makers were enticed to set up their tents in the 1990s. In return for the promise of jobs and a long-term stream of income-tax revenue, we remodeled our taxes and these fickle brides agreed to bring their dowries to the Willamette Valley.

Maybe if the illusory technology boom had continued forever, these marriages of convenience might have blossomed into lasting relationships. But this is unlikely. Sooner or later, some other state or nation would have offered them a sweeter deal, and away they would have gone.

When the boom imploded, illusions of corporate loyalty popped, too. They had no more affection or connection with Oregon than a prostitute has for a customer.

Another interesting example of corporate flirtation is on display in Washington, as one-time state symbol Boeing plays hard-to-get with its next-generation 7E7 airliner.

The fat hit the fire last week when dark horse gubernatorial candidate Phil Talmadge said the Legislature there should consider repealing the $3.2 billion, 20-year tax give-away negotiated by legislators and lame duck Gov. Gary Locke.

Talmadge, who has served both as state Senate majority leader and Supreme Court justice, dared suggest the state’s economy depends on “diversity, not dependence.” This prompted a big put-down by Locke, who is believed to favor state Attorney General Christine Gregoire to be his successor.

Boeing certainly is not in the same category as most fly-by-night multinationals. Considering its deep links with the Puget Sound region, its concerns may deserve special attention.

However, like every big company, Boeing’s actions are driven by the bottom line. It recently moved its headquarters to Chicago to court U.S. House Speaker J. Dennis Hastert, R-Ill., and it has eliminated tens of thousands of Washington jobs in the last decade. It would be nice if Washington can preserve the remainder, but Talmadge is right to question the wisdom of mortgaging the farm to do so.

The business climate in Washington has been criticized by a diverse enough group of companies, think tanks and individuals to justify a thorough re-examination. But instead of pulling out all the stops for Boeing alone, the state should enact tax changes and regulatory reforms that help everyone, especially small businesses that have proven loyalty to their communities.

The same is true in Oregon. Our regressive taxation, in particular, damages the state’s competitiveness and future prospects.

Economic development is vital. But only if it actually helps the people who make their homes here, and does so in ways that aren’t damaging to our quality of life.