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Michigan spent $1.8B and only created 602 jobs

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Re: Michigan spent $1.8B and only created 602 jobs

#11

Post by turtlesdown11 »

jmclnx wrote: post #2

That works out to 2.5 million per job. 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.

The first Trump term tariffs on washing machines was studied, it resulted in jobs that cost ~820k each in higher prices to the consumer.

The important takeaway is not only did the consumer pay more, but corporate profits rose.

https://bfi.uchicago.edu/wp-content/uploads/BFI_WP_201961-1....

Re: Michigan spent $1.8B and only created 602 jobs

#13

Post by tyrust »

altcognito wrote: post #10

Originally on reason.com: https://reason.com/2026/06/26/michigan-spent-1-8-billion-and...

With a link to the report: https://www.mackinac.org/archives/2026/s2026-08.pdf

The two largest projects are still under construction, so it might be too early to make any conclusions.

Re: Michigan spent $1.8B and only created 602 jobs

#14

Post by rogerrogerr »

meetingthrower wrote: post #4
jmclnx wrote: post #2

That works out to 2.5 million per job. 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.

The tfa says that almost all of this went to big public automakers. Enraging. I initially thought that this was going to some small biz thing that at least would slosh the money around through the owners. But nope - corp welfare!

Doesn’t this basically mean the money was sloshed around to 401k and pension funds?

Re: Michigan spent $1.8B and only created 602 jobs

#15

Post by NoahZuniga »

> Hohman examined eight major projects—"those that offered $100 million in payments and received significant media attention"—totaling $2.7 billion in promised incentives

> 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!

Re: Michigan spent $1.8B and only created 602 jobs

#17

Post by binary132 »

ryandrake wrote: post #3

> A new report suggests the state of Michigan is the latest to learn that lesson the hard way. There doesn’t seem to be any lesson-learning happening, since governments keep trying this despite the outcome always being the same.

it’s almost as if they are just lying about the purpose and doing it for some other purpose that it is perfectly effective for

Re: Michigan spent $1.8B and only created 602 jobs

#18

Post by nerdsniper »

JumpCrisscross wrote: post #6

This looks like Michigan transferred actual cash. Not tax abatements on new projects.

It's both. A mix of incentives (that were not paid out) and land reclamation (which did cost money):

> Ford, meanwhile, lowered its job creation estimate from 2,500 to 1,700, though so far it has created zero, and received no state money, as the building is still under construction. The state did, however, spend another $780 million on site preparation.

Most of the claims in the article are slightly obfuscated as to which actually involved any real net cash flow. Even the bottom line:

> Of the $2.7 billion offered, $1.8 billion has been spent—transferred either to companies or to local economic development agencies.

Doesn't make it clear what the local economic development agencies actually did with it - whether the projects were otherwise necessary, etc. Some of the spending was likely defensible even if the originally intended project fell through. Lots of it probably wasn't defensible. Michigan (and every other state) gives a lot of money to 'developers' in ways that don't look great if you bother to look into it at all.

Michigan's state budget probably totaled ~$700 billion over the past 8 years. So this accounts for up to 0.2% of the budget.

Re: Michigan spent $1.8B and only created 602 jobs

#19

Post by Henchman21 »

binary132 wrote: post #17
ryandrake wrote: post #3

> A new report suggests the state of Michigan is the latest to learn that lesson the hard way. There doesn’t seem to be any lesson-learning happening, since governments keep trying this despite the outcome always being the same.

it’s almost as if they are just lying about the purpose and doing it for some other purpose that it is perfectly effective for

Self-enrichment on the part of government employees?! I am SHOCKED BEYOND ALL BELIEF.

/s

Re: Michigan spent $1.8B and only created 602 jobs

#20

Post by 0xbadcafebee »

ryandrake wrote: post #3

> A new report suggests the state of Michigan is the latest to learn that lesson the hard way. There doesn’t seem to be any lesson-learning happening, since governments keep trying this despite the outcome always being the same.

Correct, reporting this is doing nothing to stop it. People don't directly see the impact of it on their paychecks or budgets so they forget about it the hour after they read about it. The next politician can do it without fear of reprisal
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