It’s good to see Mackinac Center work get cited in the race for governor. In the second gubernatorial debate, moderator Jason Colthorp pointed at our analysis showing that major job deals in Michigan from 2000 to 2020 delivered just 9% of the jobs announced when deals were made. Republican candidate John James also referred to our study showing that Gov. Gretchen Whitmer’s job efforts have cost $1.8 billion but have delivered just 602 jobs.

Lawmakers try to create jobs by giving subsidies and tax breaks to select companies when the businesses have an office or a factory they’d like to start. The programs are ineffective at creating jobs, unfair to businesses that don’t get extra cash from the state, and expensive to taxpayers. They also fail to meet the standards that lawmakers themselves set: Few of the companies create the jobs that they announce.

I’m glad both candidates acknowledge that the state’s economic development programs are not working.

Democratic candidate Benson says that she will be a better administrator for the state’s business subsidy programs. She still wants to subsidize diverse kinds of firms but pledges to hold them accountable. She doesn’t, however, voice any insights into what went wrong.

Nor does Benson seem to have learned the lessons from multiple attempts by lawmakers to diversify the state with handouts. Lawmakers spent $500 million trying to get a sustainable film industry through subsidies and failed. Lawmakers tried to get the jobs of the future with their 21st Century Jobs Fund, but to little avail. Administrators aren’t saying where all the money went, nor how many jobs they created from their efforts.

James criticizes the state’s business subsidy programs but also said that “we cannot unilaterally disarm.” It’s not disarmament when the weapons are duds. Ending programs that cost billions but don’t deliver on expectations would be a positive for the state. But lawmakers don’t have to go it alone. They can join an interstate compact to work with lawmakers in other states to agree to stop subsidizing select companies. Indeed, there is already legislation introduced to do that in Michigan.

While I’d like to see the candidates take a stronger stand against ineffective handouts, it’s a good sign that both recognize the many economic development failures that need correction. And it’s good to see that our work is being used to make the point.

Permission to reprint this blog post in whole or in part is hereby granted, provided that the author (or authors) and the Mackinac Center for Public Policy are properly cited.