Well, Michigan made the Wall Street Journal. As an example of what not to do.
It’s one of the largest experiments in smokestack chasing in American history, but one thing it hasn’t done is create jobs. An exhaustive new 100-page study by the Mackinac Center for Public Policy, a Michigan think tank, has reviewed where all the money has gone and what came of it. The study finds that for every 100 jobs that were promised with these tax credits over 14 years, only 29 arrived. Dare we call this cash for clunkers?
How about Dollars from Dummies?
…In Michigan these programs were responsible for 0.25% of all new jobs created in the last decade, according to the study. Meanwhile, in 2007 Michigan raised business taxes by $1.4 billion on other firms to pay for many of Ms. Granholm’s favored companies. Despite all the giveaways, Michigan was recently ranked as having the third most antibusiness climate among states, in a survey of executives by CEO magazine. If Michigan had simply cut taxes for every business, as Mr. Engler did in the 1990s when the state briefly led the nation in new jobs, it’s a good bet unemployment would be lower.
The study is here.
Previous related TOC comment here. The punch line:
The bottom line is that government is generally very bad at picking economic winners. Jennifer Granholm is much worse than that. She should attract all kinds of business and entrepreneurs to Michigan by eliminating corporate taxes and getting right to work legislation passed. It would not take nearly as long here as it did in Ireland for spectacular results. She should take a lesson from Sir John Cowperthwaite, but he’d be her philosophical nemesis.