Economic Freedom Zones are to business development as the Clear Skies Initiative was to environmental protection: an Orwellian joke.
I believe Detroit has a revenue problem as much or more than a spending problem, so I see adding even more tax cuts and reducing “payroll tax” (code for Social Security and Medicare) to existing subsidies, tax exemptions and tax cuts is counter productive. In fact, it is like inviting piranha to lunch. The feeding frenzy will only last as long as there is food on the table.
Economic Freedom Zones are an extension of the philosophy that short term concessions to business can result in long term and sustainable improvement in the economic condition of the community. In my 25 years in economic development work, I have not seen this to be as useful as hoped.
Concessions become expectations, and sunsetting of concessions often result in the closing of opportunistic business only interested in program benefits. Public investment in these projects is often not even a break even situation, let alone a sustained value. The smartypants gaming of these opportunities is the dark side of capitalism.
The cases I have seen where economic incentives have paid off usually involve smaller, more local businesses that have a stake in the long term success and economic viability of the community. The Economic Freedom Zone idea as it is now described is just shark bait.