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Enterprise zones can stimulate economic growth by attracting businesses through tax incentives and reduced regulations, often leading to job creation and revitalization of struggling areas. However, they may also result in the displacement of existing communities and businesses, as well as potential revenue losses for local governments due to tax breaks. Additionally, the benefits may not always reach the intended low-income populations, leading to inequities in economic development. Overall, while enterprise zones can drive investment, careful planning is essential to mitigate negative impacts.
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