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    Who are the NERD fund donors Mr Snyder?

    Raise the curtain.

    Ending The MEDC


    By JGillman, Section News
    Posted on Fri Jul 27, 2012 at 10:36:24 AM EST
    Tags: Michigan, MEDC, 21st Century Jobs Fund, Grants, Republicans, Central Planning (all tags)

    The MEDC, the 21st Century 'Jobs' fund, and all the other shuffling of resources into the pockets of crony capitalists in Michigan.

    It can happen.  If there is some courage to do so.  I have pledged to introduce legislation and follow through with doing such a thing.  A few hoteliers up here are passing around the hat to keep the incumbent in place, so their meal ticket isn't sent packing.  They are concerned that I will "destroy what they have built", and fortunately there are courageous ones who pass along the internal messaging of that fact.

    But in reality what have they built?  Or frankly, what has the MEDC built?

    In a radio interview the other morning, I spoke of the MEDC, Lobbying, and Pure Michigan.  I compared the taxpayer paid 'Pure' advertising to what we would have if the state paid for all advertising of business (ala the ACA)  I also mentioned the abuse of our tax dollars being thrown at 'venture' firms, as a program being expanded by sponsorship of my opponent.

    There is quite a bit of failure touted as success, and some things not mentioned by the MEDC.(below the fold)

    I had written recently on the MEDC.  Summarizing:
    "Frankly, If the MEDC's record of success was even a good one, it would still be inappropriate to be using taxpayer money from some business, or workers, and giving it to potential competitors or firms that simply shuffle the deck chairs to meet "winner" requirements.  Given the lack of success and the abuses of such efforts, its time to end the program in its entirety.

    Our state government is NOT a bank, nor is it a private philanthropic organization which uses its own money to reward good works.  Its role and ability as provider of certain infrastructure, public health and safety, and `general welfare' (schools, competitive regulatory environment, etc) is abused and threatened when it steps into risk taking ventures."


    And then today we discover yet another failure in taxpayer venture efforts:
    "The state of Michigan gave one company $1.65 million, with which zero jobs were created or retained after the business went bankrupt.

    ...

    The money was given through the Michigan Strategic Fund, a state program that administers the 21st Century Investments program "to strengthen and diversify Michigan's economy by investing in venture capital, private equity, and mezzanine funds as a method to create jobs and provide financial assistance for the creation of new businesses or industries."

    To date, the direct investment category consists of a single direct investment worth $1.65 million made in Microposite Inc., which was supposed to produce "environmentally friendly" siding products. The state received $55,373 from the investment before Microposite terminated its entire staff on June 30, 2009, and went out of business. The company also received other state support.

    The 21st Century Jobs Fund progress report states that zero jobs were created or retained from the $1.65 million investment in Microposite."

    surprised?

    Not so much.

    A point that needs to be hammered home repeatedly, is not only the underlying failure of results, but the moral hazard associated with such efforts. There is something else however.  And tying together the failure of Michigan to be as resilient in recent years as it was for so may decades previous, the article continues with a quote that also points out an important message that needs to be taken seriously:

    "The experience from the 50 states is that when government attempts to compete by picking winners and losers, it usually means the state is failing in terms of overall competitiveness," said Jonathan Williams, director of tax and fiscal policy at the American Legislative Exchange Council. "Additionally, government officials open themselves to charges of cronyism and corruption when they engage in economic micromanagement."

    "The best approach is when states work to create a competitive environment for all."

    Yep.

    Yet we struggle to convince those recipients of the perfect storm of political consequence that Right To Work will provide that competitive edge.  With all branches of government in a supposedly blue state being under control of supposedly Republican leadership, we should have to fight for common sense reforms such as Right To Work?

    And folks ask why I am running?

    We should be asking why there are not more!

    Its time to end the artificial controls over our commerce.  Both sides of the equation, from production to consumption needs to be free of the effects brought about by perhaps good intentions, but ultimately an ignorance of history and common sense.

    < Now That We Found Out What A Nerd Is | Debbie Stabenow's Food Stamp Bill >


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    I remember several years back... (5.00 / 1) (#1)
    by KG One on Fri Jul 27, 2012 at 03:43:11 PM EST
    ...during the early heady days of the Granholm Occupation, politicians were looking high and low for those illusive hidden "pots of money" to shift around to make a close approximation of a real budget.

    When my capitol critter was at a local meeting and the subject came up among group of us talking about the budget, I told him point-blank: Defund MEGA/MEDC.

    He didn't know what it was.

    I gave him a brief summation and he told me that he'd look into it.

    When I saw him again, he never would give me a straight answer when I asked him about his progress.

    As for why there aren't more people running?

    I honestly wish that there were more as well.

    I cannot speak for them, but there are those of us who kind of have our hands full with other matters at the moment.

    I'm one of those who is not big on the government agency about coercive kindness.

    Sorry, but I'm limited to doing lit/sign drops for only a short period of time right now.

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