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Tag: Ipse Loquitor

Baddery

By JGillman, Section News
Posted on Thu Sep 16, 2010 at 12:27:47 PM EST
Tags: Michigan, MEDC, Corruption, Batteries, Free markets, Incentives, Ipse Loquitor, Factories, Granholm, business (all tags)

We as taxpayers just spent About $113,000 per job created in Michigan.

That is the hard fact of what it took to get a battery plant built here to provide 3300 new jobs. Never mind the NEED for those jobs, or whether the new green economy demands it enough to make it PAY FOR ITSELF. It is the cost of having business DO BUSINESS in Michigan it seems, and no amount of common sense ought to dissuade our dear leaders from paying that price right?

And that price per job, is only if all goes well.

As we have seen by recent events, the MEDC record for picking winners is not even as accurate as my dog's method of identifying visitors. Never mind the trickle into the Michigan economy from these new jobs cannot offset the cost in taxes paid to make it possible. And Never mind the very people who are running the taxpayer supported operation say they haven't been profitable.. yet:

In a filing with the SEC, the company stated: "We have never been profitable. ...We have a history of losses, and we may be unable to achieve or sustain profitability."
The company was founded in 2001 and announced its lithium-ion battery system in 2005. Since then, A123 states that it had net losses of $31 million in 2007, $80.5 million in 2008, and $86.6 million for 2009. Furthermore, it had negative cash flow of $56.1 million in 2007, $76 million in 2008 and $114.7 million in 2009.

With Michigan's cost alone being $125,0000,000.00, one must wonder about what worms are working their way through the mushy skulls of Michigan's leadership to allow such things to continue.

(5 comments, 748 words in story) Full Story