A new report from the Kalamazoo-based Upjohn Institute found that millions of dollars in tax credits given away by the Michigan Economic Growth Authority created just 18,000 jobs over 11 years, according to The Detroit News. Michigan continues to lead the nation in unemployment.
The News cited Mackinac Center studies of MEGA that show the program has had "minimal effect on economic growth." Center scholars performed two extensive studies of MEGA and the Michigan Economic Development Corp., in 2005 and 2009.
The New York Times and WILX-TV10 in Lansing reported that Center analysts found fewer than one-third of the jobs the state claimed would be created through MEDC subsidies ever came to fruition. The Jackson Citizen Patriot, citing the Center studies, said "It's clear the numbers the state puts out each month are inflated."
A Detroit News editorial cites the Center studies that noted jobs created by MEGA grants cost $123,000 each and states that "creation of a business-friendly climate with lower taxes for all Michigan firms" is what will benefit Michigan.
Wednesday, May 12, 2010
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