Before we attack the largest industry employer in the city of Boston—the mutual funds industry—let’s remember that the tax breaks referenced in the recent decision of Fidelity to vacate its space in Marlboro were granted to all mutual fund companies. The mutual fund industry alone occupies over 35% of the Class A office market in Boston and vendors to the mutual fund industry are a major source of occupancy and employment as well. Mutual funds drive the Boston economy.
And the mutual fund industry in Boston is a proven success. We are not talking about subsidies and incentives to unproven or unstable industries. The Evergreen Solar debacle is the best example of the latter.
If we are going to provide tax breaks or subsidies at all, and I often question that wisdom, the least we can do is to make them available to all of the companies within a target industry. And we should begin by making sure we work with our successful industries first. The success of many other industries depends on the success of the core industry of a region.
Friday, March 18, 2011
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Good post. Probably the biggest thing we have going for us other than our many colleges and universities. A "basic" industry for the area, wonder how many additional jobs in legal, accounting, restaurants, etc. each mutual fund job creates? Would think at least two or three, so for every mutual fund job we lose there's a negative multiplier effect.
ReplyDeleteThanks Bullock Commercial. There has always been the typical multiplier industries associated with the mutual funds industry--custodial banks, legal services, accounting--but there are now countless specialized software and web-based firms setting up shop in Boston to specifically serve the funds. Let's hope the administration doesn't have a hissy fit and really do something stupid.
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