Governments big and small, and political parties left and right, are all agreed on one policy issue: giving private companies taxpayer money and other state-sponsored prizes is a good thing.
After all, the thinking goes, these investments in economic development generate jobs, economic growth, general prosperity…and plenty of photo-ops for the pols who make it all happen.
This magical thinking, however, masks the genuine horror show that is “economic development.” The Center for Economic Accountability peels back the mask every year to reveal what it considers the worst economic development deal of the year. And the winner this year is the $1.75 billion Michigan pols decided to hand out for an electric car battery factory.
The joint venture between Ford and Chinese battery maker CATL is everything we've come to expect, and loathe, about corporate welfare:
…Michigan's subsidy of the joint venture between Ford Motor Company and Chinese battery manufacturer Contemporary Amperex Technology Co., Limited (CATL) in rural Marshall, Mich. stood out for a unique combination of factors. These included a massive $700,000 per-job price tag for below-average jobs; the use of unrealistic “job multipliers” to artificially justify its massive price tag and an uncertain future where success would depend on labor negotiations, consumer preferences, federal policy and technological advancements all combined to make this deal stand out from a crowded field.
But simply being a bad deal for taxpayers wasn't enough. The factory's backers decided to play dirty against locals who questioned the deal:
…the Detroit Free Press broke the story that political groups tied to Michigan Gov. Gretchen Whitmer spent an estimated $100,000 in “dark money” to run a public relations campaign against local Marshall-area residents who were being inconveniently vocal in their opposition to the deal. The Free Press made the connection between the governor's political allies and the PR campaign because it used consultants, lawyers and even phone numbers tied to Gov. Whitmer's 2022 re-election campaign and the state Democratic Party. Campaign activities included mailing out postcards that used photos of local opponents, as well as robocalls and other professional campaign tactics.
Because nothing and no one can be allowed to stand in the way of a massive corporate welfare scheme.
The opinions expressed in this article are those of the author and do not necessarily reflect the positions of American Liberty News.
