More and more today I read about states such as SC, TN, AL and others offer financial incentives to companies in order to land plants, faciliaties, headquarters and basically jobs. Of course, it isnt just a southern thing since MI has done this as well. However, what are the downsides to offering taxpayer-funded incentives to businesses? It seems to me that most companies, at least today, are "carpet bagging" if you think about it.

For instance, TN, offered hundred of millions of dollars to land the new VW plant. But at what expense to other segments such as infrastructure, schools, and services? I mean, VW could pull out 15 years down the road and for what?

So, what are the downsides to using public funding to land private business?