A Borders Subsidy

http://www.futureofcapitalism.com/2011/03/a-borders-subsidy

When we mentioned that people were responding to the closure of bookstores by suggesting a government-backed "neighborhood bookstore development bank," we thought it was just a proposal. But it turns out a government bookstore subsidy has already been tried and, not surprisingly, failed.

The Whittier (Calif.) Daily News brings word that taxpayers in Pico Rivera, Calif. had spent $1.6 million in federal grant money to bring a Borders bookstore to the city under a 2002 agreement, and that the city had been subsidizing the store's rent to the tune of about $10,833.33 a month since it opened in 2003. Now that the store is to be closed in the Borders bankruptcy, the town is wondering if it still has to pay the monthly rent.

The newspaper quotes Councilman Gregory Salcido as describing the bookstore subsidy as "a proper investment in literacy."

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by Ira Stoll  |  Mar 21, 2011 at 1:58 pm receive the latest by email: subscribe to the free futureofcapitalism.com mailing list