by Greg LeRoy and Kenneth Thomas

The European Union’s rules on subsidies limit bidding wars, and make the level of incentives seen for Amazon, Foxconn, and other companies completely impossible.

By David Leonhardt, New York Times

magine that a bunch of children are sitting around a table when a seemingly beneficent adult walks into the room carrying a plate of cupcakes. The kids burst out in excitement — until they notice a problem: There are fewer cupcakes than children.

At this point, the adult announces some ground rules. To receive a cupcake, the children will have to compete with one another. The adult will accept cash or other objects of value. Praise for the adult’s kindness would also be welcome.