Tag: Center for Economic Accountability

Report: U.S. Economic Development Departments Pay Big Money for Few Gains

The Center Square

While billion-dollar economic development incentives are heavily expanding across the country, the agencies in charge of handing out those incentives claim to create or retain 625,000 jobs in their most recent fiscal years, according to a new report.

The Center for Economic Accountability tallied up the jobs claimed as part of incentive packages in the 50 states and Washington, D.C. and found job total would be less than 5% of the 15 million to 17 million jobs naturally created in the United States economy each year.

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General Motors, MEDC Aim to Fool Michigan Taxpayers with Bait and Switch: Analyst

The Center Square

General Motors (GM) garnered national headlines when it promised to invest $6.5 billion in Michigan, but the people negotiating the deal’s claw back provisions might only require GM meet half of that investment and 80% of the original job creation promise, despite taxpayers still footing an $824 million subsidy.

When in front of the press, GM and Michigan promised the factory would support 4,000 jobs and retain another 1,000 – a cost of about $206,000 per job created, and if it failed, Michigan could claw back a sizeable portion of that money.

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Gov. Whitmer Calls on Lawmakers to Boost Michigan Economic Development Corporation Funding

The Center Square

Gov. Gretchen Whitmer called on the Legislature to provide more taxpayer money to the Michigan Economic Development Corporation (MEDC) to attract businesses, but an economic development analyst and GOP leader disagree.

Citing Ford Motor Company choosing Kentucky and Tennessee to build electric vehicle battery plants instead of its home state, Whitmer called on legislative leaders to give the MEDC “more resources and more advanced procedural and legal tools” to pursue projects.

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