A recently released Mackinac Center study about the ineffectiveness of the Michigan Economic Development Corp. is receiving state and national media attention.
The Michigan Senate voted to allow the MEDC to award more special favors and subsidies to hand-picked companies — rather than reforming the state's tax, regulatory and labor climate in a way that would benefit all businesses — despite the fact that Center research shows fewer than one-third of the jobs promised by the MEDC come to fruition. The study also found that every $1 million in manufacturing tax credits given in a particular Michigan county is associated with the loss of 95 manufacturing jobs in that county. The Senate approved the additional money despite the fact the MEDC used up its allotment of tax credits for 2009 several months ago.
In the decade since the MEDC was created, Michigan has fallen from 16th to 41st among states in per capita GDP and is the only state with a negative GDP growth. Per capita personal income among the states has fallen from 16th to 34th and is now 11.2 percent below the national average, the lowest point it has been since the Great Depression.
Here is a partial list of print and broadcast media in which the AP story appears:
"Rich States, Poor States" Presentation – Traverse City, MI
Friedman Legacy Day
Calls to Expand Michigan’s Economic Development Programs Fall Short
Not in a Box, Not With a Fox; GOP Didn't Cut School Funding
Why Americans Should Care the U.S. is Approaching $20 Trillion in Debt