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by rmason 1536 days ago
Sorry to sound cynical but it's a question of priorities. Michigan just gave General Motors $2 billion to build two EV battery plants, one in Lansing and the other in Detroit which will create 3,000 jobs.

The billions are coming from Federal COVID money. The state caused Flint's problem by discontinuing water from Detroit and pulling from a local river without adding a required chemical.

This decision was made by an emergency manager appointed by the then governor to save money. This manager took power away from the elected mayor and city council.

2 comments

I can't believe paying 750 000$ for a job is ever considered a good idea. If your goal really is only to provide jobs you might as well start a public works program instead of shoveling money to the private sector.
If it is a one-time sum, it may actually make economic sense over some reasonable time period. Consider:

1 industrial job may lead to : - 1-2 jobs in private services in the same area - 1-2 jobs in public services in the same area - industrial activity that can be taxed later - in the case of electric batteries, there may even be some environmental benefits that have value - once the facility is located to some location, it may be expected to grow over time, creating even more jobs and taxable corporate profits

In other words, each direct job can easily be around 4 jobs total. Future taxes from 4 jobs + corporate profits (and other taxes) + expected growth + the value environmental benefits may very well be worth the $750 up front investment.

Public works projects do all of that.

Also, there are not going to be environmental benefits, the only difference is that the batteries would be getting built somewhere else.

Who is going to pay you lobbying money if you do that? Much better to pay 750k and get 10k back as campaign contributions.
Sorry to sound cynical but it's a question of funding. Flint city council (Democrats) almost unanimously voted to switch the water source to the Flint River to cut costs because they did not have funding for a renegotiated contract with the original water source. The city was effectively bankrupt.

>Michigan just gave General Motors $2 billion to build two EV battery plants, one in Lansing and the other in Detroit which will create 3,000 jobs.

This is fake news, Michigan state did not give money out to GM.

>The state caused Flint's problem by discontinuing water from Detroit and pulling from a local river without adding a required chemical.

>This decision was made by an emergency manager appointed by the then governor to save money.

Voted almost unanimously by the city council. Everyone loves to leave that detail out.

>This is fake news, Michigan state did not give money out to GM.

Yes, seems like its just $666Mil (such an odd number lol)[1].

[1] https://www.mlive.com/public-interest/2022/03/michigan-lawma...