Tag: MEGA

Some of the ideas are familiar, but limited in ways typically embraced by establishment Republicans.

Rand Paul's visit to Detroit was precipitated by a conference call being reported by the Detroit News. In it, Senator Paul speaks of enterprise zones, with taxes so low as to "bail yourselves out". Adding to this an loosened visa incentive for a flow of foreign "entrepreneurs" into the city.

Paul, widely considered a 2016 potential presidential candidate, said he will introduce legislation Monday to create "economic freedom zones" by dramatically lowering taxes in depressed areas and loosen visa rules to encourage foreign entrepreneurs to immigrate to the city.

"We hope to create taxes so low you essentially are able to bail yourselves out," Paul said Thursday in a conference call outlining his plan.

I wonder how that would work?

Maybe something like this?

"Mr Chen, you are welcome to stay, invest, develop, and work in our country. However, you are limited to this particular region. If for some reason you are not satisfied there, I guess you are out of luck."

"Welcome to the Hotel Detroit. Love it, or get the hell out of our country.."

Which of course begs the question of what happens to those who emigrate, and decide to move somewhere a little safer than Baghdad of Michigan? When "loosening visa requirements," it seems that a genie let out is a little hard to stuff back in the lamp. Its hard to imagine 'restrictive' movement placed on those who simply seek a better life, and upon finding out that Detroit is no better than the hole they left, it is highly likely that they will indeed "seek" such a place.

And it seems we have heard those words about foreigners feeling welcomed before.

A Republican, Rick Snyder, is the father of the MEDC.  It was his baby, and lest anyone forget, it was created under the Republican Engler administration.  The MEDC, which has yet to produce a model that definitively demonstrates taking taxpayer funds, then giving those funds to hand picked "winners" produces net economic growth in our state.  The MEDC which essentially could be called a taxpayer funded venture capital scam.

The MEDC's MEGA, The state of Michigan through Tax Breaks, and the DOE,  which gave us that "success story" A123 systems.:

"When A123 Systems announced it was opening its lithium-ion battery manufacturing plant in Livonia in September 2010, then Gov. Jennifer Granholm wrote about it on the Huffington Post calling it "a Recovery Act success story."

But there have been troubles for A123 Systems in the 17 months since then despite a lot of state and federal aid to prop it up.

The state of Michigan gave it a $100 million MEGA tax credit that is contingent on the company creating 300 jobs by the end of 2016. A123 Systems also received another $41 million in tax breaks and subsidies from the state. The Department of Energy awarded A123 Systems a $249.1 million grant.

But the company has not been able to meet its own projections. For instance, on March 28, 2011 in an SEC filing, the company projected total revenue between $210 million to $225 million for 2011. Its latest report shows they had just $118 million of total revenue through the first three quarters of 2011 and reported a net loss of $172 million."

Yeah, that's a winner.

In fact doing so well, taxpayers should be happy to know that the top brass in the company thanks them for providing a generous raise.

Who was it?

John Mackey, The former liberal turned moderate/considered-conservative businessman who royally ticked off the administration a couple years ago with his scathing editorial on Obamacare. The editorial frankly is worth going over again. Its brilliant.  In fact, I would say the man is equally so, and understands how to squish those (organic) lemons into some fine lemonade.  It takes opportunity multiplied by desire for the lemonade.

And maybe a little cash.

Desire of course for the finest lemonade around, or at least a few good jobs, and the possibility of revivals in neighborhoods might what is driving this successful entrepreneur to look at a full blown grocery operation in Detroit.

I cannot even imagine the improvements I could make to my business If I was given $188,000 per each new employee I hired. I would be able to "blow away" the competition by undercutting them.  I could man the phone sales lines 24 hours a day.  I could invest in new equipment, buy new product, etc...

$188,000.00 is not exactly chump change.. It is about 4 and a half times the national average manufacturing yearly earnings. (Or twice that of the average UAW worker's earnings)  And since my compensation package is even less, I could employ each person for about 6 years..  What the heck.. I would shoot the moon and go for the 5 year plan and pay em more!

In the end however, we appreciate the continued feedback from those we deal with all year long, and simply want to show them our appreciation for their continued patronage, and let them know we won't forget them.

Businesses have been doing this kind of thing for ages. Rewarding loyalty is in fact a key concept of retaining market share in the most competitive environments.  Movie rental shops will have punch cards, and some grocery stores will have a club card that gives a discount, and soda or cigarette manufacturers will have you saving bottle caps or peeling UPCs.  In fact, most of you who read this likely have a credit card that has a "cash back" feature, or some time of reward for using it frequently.  A degree in rocket science is hardly needed to understand why.

Well perhaps not even trivial, but at the very least simply non freedom stealing in an outright way.

Hmm.  Not quite as pithy.  Nevermind.  Besides, you get the point.

I mean, we could discuss General Motors escape from Chapter 11 bankruptcy. The Ivory Tower even manages to poke a little fun at the Obama administration, which is a little bit jarring on first blush, but nice for a switch.

We could discuss the Associated Press's revelation of additional shady business from elected Democrats in the Motor City.  Shady unless you consider using emergency funds to purchase a $1,600 floral arrangement good stewardship.

Then there's the Detroit News taking the Granholm-Cherry administration out to the woodshed for lying about Michigan's graduation rates.  

(And oh so much more... please read on...)

The Grand Rapids Press is reporting that Farmer's Insurance will today announce plans to create 1,600 jobs in suburban Grand Rapids.  Maybe.  

I mean, the announcement is coming today and Governor Granholm will be there giving a speech and looking extra gubernatorial... but the actual creation of 1,600 jobs is a little more iffy.  

The announcement is expected to coincide with expected approval of huge tax breaks for Farmers by the Michigan Economic Growth Authority Tuesday morning...

The company would have 12 years after completing (two new) facilities to create 1,000 additional jobs at the campus in order to qualify for a 100 percent employment tax credit.

Farmers would need to create 1,400 jobs by the end of the 17th year in order to qualify for the final year of tax credits.

The only other certainty is that the Democratic governor had to offer a 100 percent tax credit (that's all of it, for the arithmetic-challenged) to convince a company already located in Michigan to consider expanding their operation effectively over the course of two decades.

Fingers crossed, knock on wood and any other superstition of your choosing that Farmers comes through but the recent track record of MEGA hasn't been that hot.  Won't stop the mainstream media from fawning all over the Governor, though, and giving her credit for creating thousands of jobs that won't exist until her kids are approaching the big 4-0.  

Going to go out on a limb and guess there won't be a reporter at the presser or anywhere else in the state with the stones to call the Guv on her tax policy hypocrisy, either.  The best kept secret in the state of Michigan is how much faith the Democratic administration actually places in tax CUTS as tools for economic stimulus and job creation.

Meanwhile, over on the other side of the state where automobile manufacturing plants continue to be shuttered, laid off Michigan auto workers can do little but look on as another auto manufacturing operation gets set to open somewhere else.  The Detroit News is reporting that the auto manufacturing hotbed that is... Louisiana... is set to build a few extra cars.

A well-financed company is close to choosing a shuttered north Louisiana site to start a new automobile manufacturing facility, creating up to 1,500 jobs, according to two elected officials from the region.

State Rep. Jim Fannin would not identify the company but said the vehicles would be its first and would be built at a former Guide Corp. plant in Ouachita Parish. He said Gov. Bobby Jindal would make an announcement about the deal Wednesday.

Monroe City Council member Arthur Gilmore said the project, which would build fuel-efficient vehicles, involves California venture capitalists Ray Lane and John Doerr of Kleiner, Perkins, Caufield & Byers, which has been extensively involved in "environmentally friendly " projects and companies.

Got that?  California environmentalists are set to open a green-car manufacturing outfit in Louisiana.  Not Michigan, where our workers, engineers and infrastructure have been built for the last one-hundred years specifically for projects like this.  Louisiana.  What do they have that we haven't?  I mean, besides a dynamic, successful economic conservative in the Governor's office.  

Then again, maybe the more relevant discussion is about what Michigan has that Louisiana doesn't.