You want to know how to burn $1.8 billion and have almost nothing to show for it? Ask Michigan. The state just proved that throwing money at job creation doesn't work — at least not when you're handing it out like candy at a parade.
Here's the number that should make you choke on your morning coffee: 602 jobs. That's what Michigan taxpayers got for their $1.8 billion investment in corporate subsidies and economic development programs. Do the math. That's nearly $3 million per job. You could hire a CEO for that kind of money — and still have enough left over for a gold-plated severance package.
The Raw Numbers Don't Lie
The report from the Michigan Auditor General is as brutal as it is boring. Over a five-year period, the Michigan Economic Development Corporation (MEDC) doled out $1.8 billion in tax breaks, grants, and other incentives. The promise: jobs, jobs, jobs. The reality: 602 net new jobs across the entire state. That's not a typo. Six hundred and two.
Let me put that in perspective. A single Amazon warehouse employs more people than that. A decent-sized McDonald's franchise creates more jobs. Hell, a busy Chipotle probably hires more people in a year. Michigan spent enough money to buy a small island nation and got the workforce of a mid-sized high school.
Who Got the Money?
Of course, the money didn't just evaporate. It went to companies that knew exactly how to play the game. They'd promise 500 jobs, take the tax break, deliver 50, and quietly blame the economy. The MEDC, meanwhile, counted those 50 as a win. Because in the world of economic development, success is measured by press releases, not reality.
The worst part? Many of these jobs weren't even new. They were just moved from one part of the state to another — or from neighboring states. Michigan paid companies to cannibalize their own economy. Brilliant.
“The state spent $1.8 billion and got less than a thousand jobs. That's not economic development. That's a heist.”
This Isn't Just Michigan's Problem
Before you smugly say “typical government waste,” know that this is a nationwide disease. Every state does it. They call it “incentives” or “business-friendly policies.” I call it corporate welfare. Companies have learned to pit states against each other, playing a game of “who will give us the most free money?” And states always blink first.
Remember the Amazon HQ2 circus? New York offered $3 billion in incentives for 25,000 jobs. That's $120,000 per job — already a bad deal. But Michigan blew that out of the water with $3 million per job. And Amazon didn't even come to Michigan. That money went to companies you've never heard of that will be gone in five years.
The Real Cost: Missed Opportunities
Here's what $1.8 billion could have bought Michigan: 200 new elementary schools. Or 36,000 college scholarships. Or a fully funded infrastructure program that actually fixes the damn roads. Instead, it bought 602 jobs that probably pay minimum wage and offer no benefits.
And let's talk about the accounting. The state counts every job that a subsidized company creates, even if that company would have created them anyway. They don't subtract the jobs lost when an unsubsidized competitor goes under. They don't count the cost of higher taxes on everyone else to pay for these giveaways. It's a Ponzi scheme of economic development.
Why Politicians Keep Doing It
Because it works — for them. A governor can stand at a podium, cut a ribbon, and announce “500 new jobs!” Voters cheer. The news cameras love it. Never mind that the jobs never materialize. By the time that's clear, the politician has already moved on to higher office or a cushy lobbying job. The next guy inherits the mess.
The MEDC's own metrics are a joke. They claim every dollar of incentive generates $5 in economic activity. That's the kind of math that would get a private company sued for fraud. But in government, it's called “return on investment.”
What Should Michigan Do Instead?
First, stop paying companies to do what they would do anyway. If a company can't survive without a tax break, it's not a job creator — it's a parasite. Second, invest in things that actually create sustainable economic growth: education, infrastructure, and a legal system that doesn't favor the connected.
Third, make the deals public. Every single tax break, every dollar handed out, should be posted online with the company's actual job creation numbers. Let reporters and watchdogs do what they do best. Sunlight is the best disinfectant, and this system reeks.
But don't hold your breath. The same politicians who approved these deals are the ones who would have to reform them. And they're too busy cutting ribbons.
The Bottom Line
Michigan spent $1.8 billion and got 602 jobs. That's not a failure. That's a crime. Somewhere, a state official is patting himself on the back for “stimulating the economy.” And somewhere else, a taxpayer is wondering why his roads are full of potholes while corporations get fat on his money.
The next time a politician promises jobs in exchange for your tax dollars, remember Michigan. Remember 602. And ask them: what are you really buying?
