Are Incentives Enough for Memphis Job Market?

Are Incentives Enough for Memphis Job Market?

The Memphis job market is not where many people want it to be and as a result, there is a lot of talk about incentives. Should businesses be offered significant incentives to stay or to open up shop in the city? That is what many are talking about right now.

Morgan Keegan and Company

One of the companies seeing an incentive to keep their jobs in the city is Morgan Keegan and Co. The company could be lost by the city after a recent new competitor became far more competitive. The city's mayor has announced he will consider using incentives as a way of keep the company's 1050 jobs in the Memphis job market.

What many local officials are worried about is the fact that the competitor could become a possible bidder for the Morgan Keegan and Company investment company. The competitor, who is based out of St. Louis, could push for the jobs now in the city to move to St. Louis. This could be a cost cutting method the company takes to help offset the overall cost of buying Morgan Keegan and Company. The price tag on the company stands at $1 billion now.

There is no way to know if the sale will go through. However, the use of incentives is the best way, the mayor claims, to keep the jobs in the city. The company itself was founded in 1969 in the city and has an annual payroll within the Memphis Job market of $150 million currently.

Could and should the company's jobs be saved through lucrative incentives? What is your take on this type of use of incentives?