Study: Kelo-Type Takings Bad for the Economy

Daren Bakst of the John Locke Foundation posted the following on the foundation's Blog, The Locker Room. Click here for the link.


Kelo-Type Takings: Bad for the Economy

This interesting and concise study by the Federal Reserve Bank of St. Louis is worth a read. It does an excellent job of explaining the difference between a private and public good and using this difference as the distinction in understanding a "public use."

It also explains why economic development takings are bad for economic development. From the article's conclusion:

"Supporters of Kelo argue that using eminent domain for private development will spur economic growth. Although a lack of sufficient data currently prevents empirically testing the economic effects of eminent domain described in this article, economic theory certainly suggests that eminent domain used for private economic development will likely result in a zero-sum gain and may actually hinder economic development in the local areas, as well as the region, rather than help."