Politicians love to announce “big wins” when a new factory breaks ground or a large company pledges to bring jobs to town. The photo ops are flashy, the headlines are positive, and taxpayers are told it’s all part of a smart economic development strategy. Some may even point to these announcements as evidence that our economy is growing—that we’re on the right track toward broad-based prosperity and finally competing with rival states. How can we know for sure? Consider whether the hype is the result of growth or giveaways, where the reality might involve subsidies, often called “corporate welfare,” where the government essentially “attracts” certain businesses and leaves taxpayers footing the bill.

Corporate welfare is no new phenomenon. Back in 1773, the Boston Tea Party wasn’t just about taxes on tea; it was also outrage over the special monopoly privileges handed to the British East India Company. Those perks were essentially an early bailout, designed to pull the company out of debt at the colonists’ expense.

Today’s business subsidies and exemptions may look like investments on paper, but are actually government favoritism at the cost of taxpayers in practice. When state or local leaders hand out special tax breaks, credits, subsidies, or grants to select companies—often to those with the most lobbying power—they’re giving one business an edge over its competitors and signaling preferred sectors of the state’s economy over others. The result is a disproportionate tax burden on everyone else.

Let’s also not forget that a return on investment is never guaranteed, and taxpayer dollars shouldn’t be wagered in this regard. History is full of costly examples of corporate welfare wasting enormous sums while distorting markets and breeding cronyism. Take the Obama administration’s $535 million loan guarantee to Solyndra in 2009, a renewable energy company that later went bankrupt. America has seen time and again that lasting development happens when every company has the same chance to succeed based on value and innovation.

Louisiana has continually fallen into the trap of expensive, ineffective, top-down policy “solutions,” and has lost residents because of it. The lesson? Sustainable economic growth comes from creating a competitive, fair environment for business. That means a low, broad, and simple tax structure, reasonable and predictable regulations, and a responsible state budget that doesn’t require constant patchwork solutions. These fundamentals, not government handouts, are what create fertile ground for business and entrepreneurship.

Louisiana has the raw ingredients for prosperity: abundant natural resources, a strategic location, and hardworking people. It has also begun real policy reforms that have the power to develop, attract, and retain businesses, workers, and families following years of decline. But we won’t reach our full potential if we keep tying our future to sweetheart deals and subsidies. True economic development means empowering all businesses and workers to thrive. Ending corporate welfare and focusing instead on broad-based, pro-growth reforms is the only way Louisiana can compete—and win.