A Rorschach test for economists, with update

I was visited today by a cabinet minister from a medium-sized, middle income country (which shall remain nameless for the purposes of this post). He explained that, among other challenges, he faces the task of attracting foreign investors to his country. He related the story of how he has just induced a large IT multinational to make a big investment by providing it rent-free space for 10 years on a public site. In view of the subsidy, he had to bring the finance minister on board. But he said that had not been a problem. The finance minister was happy to approve the benefit.
When you hear this story, which one of these two responses comes closer to how you feel about it:
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