but i dont think "leave it up to the market" is a better idea. investments like this just need to be transparent, open to everyone and set up strict punishment for stealing the money with prison for executives.

if they wanted to actually create jobs they would support small companies and set up open competitive programs based on project quality. or start a state investment bank giving super low interest loans so factories can expand without cutting profitable divisions like in china.

There doesn’t seem to be any lesson-learning happening, since governments keep trying this despite the outcome always being the same.

When Governor Jennifer Granholm was governor a guy approached the state needed investment for a factory in Flint. It would create thousands of jobs. They were delighted because that is something that never happens in Flint. They not only gave him the money but he posed him holding a $9.1 million dollar check with the governor. The picture of the two of them together was in all state media. You know when something sounds too good to be true you might want to do a little checking? When people in Flint saw the picture they informed the state that this guy was a well known conman who had just got out of jail and was living in a trailer. Luckily they were able to recover the money.

https://www.mackinac.org/12345

Another Gov. Granholm story was the time an old line Boston VC firm approached the state for investment. So the state pulled funds out of the employees retirement plan to invest in the next round. The idea was that this would give the state more venture investment. But again no one did any due diligence whatsoever. This firm was not obligated to open an office in the state but only come a couple of times a year looking for investments. They were under no obligation to make any investments in the state and in fact did not. Due diligence would have revealed that the firm offered a very low return on their last several funds. So in the end the employees retirement funds grew more slowly and the state got no venture investments. That venture firm wasn't able to raise another fund and closed.

> All told, the governor said that her major subsidy projects would create 20,595 jobs in Michigan

Even using these numbers that works out to $135k/job, which is bonkers!

This is not the first time this type of thing happened almost looks like a laundering scam. Companies that do this should face real and very expensive consequences. But we know that will never happen.

Apparently their tax system is quite favorable to businesses, but taxes are only one (small) part of the equation. The taxes matter more once a company is making a lot of money.

In short, tax incentives and random per company “investments” (bribes?) are not enough to offset certain laws and regulations Michigan has.

I am not saying those laws and regulations are bad. I am just saying that targeted tax incentives and investment for specific companies are the wrong way to solve the problem.

No thanks

I'm not saying we need to copy state backed but the climate is desperate

“We won’t collect additional property taxes on this new thing you’re building for 10 years” is not the same thing as spending money. If a business doesn’t start there instead you don’t get any money at all. So in both scenarios you get no tax revenue but without the business you hurt your own economy.

It’s not taxpayer money being sent away. It’s tax collection policy and if we claim tax exemptions are spending money, then the government is also spending billions on non-profits and low income households.