So What Comes Next for Michigan?

Michigan has been handing out gigantic “get jobz!” gift cards to companies for years, only to watch most of them never get used. Now the state’s saying, “Hold up...maybe we should handle this differently.” Michigan’s big subsidy program called Strategic Outreach and Attraction Reserve (SOAR) has fizzled, and now lawmakers want a new plan before the next round of corporate deals. Um, ya think?

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Let's look at the details.

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Here are Five Fast Facts on Michigan's SOAR flop and pivot:

1. 🤯 How Much In Giveaways?? - Since 2019, Michigan gave over $2 billion in big incentives to lure companies, but only about $1 billion was actually spent. That’s probably just as well, given the results that $1B spent achieved.

2. 👀 Jobs No Showed - Of the 65,000 jobs promised by SOAR deals, only about 13,000 were reported. That's just 21% of the target. That's weatherman accuracy right there!

3. 🪫 Gotion...No Motion - One of the big bets - Gotion Inc., a battery-maker - defaulted on a $175 million incentive because things stalled. Talk about a flat tire on the business highway.

4. 🔥 New Rules Incoming - Lawmakers are a little crispy from being burned by "really bad deals" from the Michigan Economic Development Corp., accusing them of playing favorites with out-of-state companies while ignoring loyal Michigan businesses who've been "paying the freight" all along.

5. ⏱️ Time Is Ticking - Because the subsidy program is being retooled and state job growth is still below average, experts warn that doing nothing could hurt Michigan’s economy in the long run.

🔥Bottom line: Michigan’s been handing out super-sized business incentives hoping for mega job growth, but the results have been less than spectacular. Now the state wants to reboot the system to be less flashy, more accountable, more “you did the work, you get the reward.” It’s a lesson learned the hard way: sometimes, the best investment is simply trusting the businesses who were already there, instead of trying to lure a celebrity company with a billion-dollar gift basket.

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Do you agree with this pivot in direction?

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