Is This a Joke? Michigan Spends $3 Million Per New Job Created And Considers It To Be A Success?
Only government bureaucrats would consider spending $3 million to create a job to be a success! Two new state government "job creation programs" are bragging that they have spent over $116 million to create 40 new Michigan jobs over the last two years - almost $3 million per "created" job!
Source: Leon Drolet and Detroit Free Press
MP: Wouldn't a Michigan State Jobs Bank be cheaper?
17 Comments:
I can create those jobs for only $2 Million each!
I need to start working on my marketing campaign showing how much I am saving the state...
Wouldn't a Michigan State Jobs Bank be cheaper?
Sure, when are you going to found it, manage it and produce verifiable results? You have alot of letters after your name.
OOPs, the blonde with big hooters in seat 3C is more pressing. You, Carpe Diem, are an academic twit.
What the hell is MI doing with a venture capital investment fund anyway?
I guess the joke is really on the muni bond holders who financed the $3 million dollar jobs.
These are venture capital funds!
1. The INVESTMENTS are not out of pocket from the state treasury. The capital comes from private INVESTORS.
http://www.venturemichigan.com/about_vmf.htm
2. They are INVESTMENTS. For crying out loud the state didn't spend the money. The private firms didn't even SPEND the money (as if it were lost). They INVESTED it. The funds are growing and providing returns for INVESTORS.
These are investments in Michigans economy. True, the actual benefit is probably more to the private investors than the state economy with only 40 jobs created. You must remember they are investments and will continue to grow.
Any first year MBA student would quickly and easily understand this stuff. I have been watching and reading your blog for some time. I am a UofM graduate. I'm convinced that you must be a fake. No professor employed by the business school at the University of Michigan could possibly make so many obviously idiotic posts. The government of the State of Michigan is not a joke sir. YOU are a joke.
So, a potential $200 Million tax voucher, in the case of the Venture Michigan Fund, provided to these "investors" doesn't impact the taxpayer in the state of Michigan?
The anonymous poster above is NOT correct when he/she states that these funds came from private investors. If these investments were all private, why would they need a state government program?
Some of the funds "invested" come from the sale of future state tobacco settlement monies that the state sold for up-front money today. Those are public dollars stolen from the future and spent on these investments.
Further, "investments" can, and do, lose money. Sometimes they make money, but sometimes they don't. High-risk investments - such as those that the private-sector is unwilling to take the full risk for - come crawling to state bureaucrats asking for taxpayer dollars. I mean, it's only taxpayer dollars. Who cares if the investment is very risky?
You left out the part about 11 fledgling companies in your post quote. How many people are employed at those companies whose jobs may have been saved? Those numbers may, or may not, need to be added to the 40 new jobs for accurate analyses of the outcomes realized from the investment.
In this moment Intrade predicts Mccain will win 50.6 -49.5 , versus Obama
I think is the first tima that happen in Intrade.At least since May.
http://www.ocregister.com/articles/tax-percent-federal-2077390-taxes-tiger
talk about "job creation" (or the lack thereof)...
To MP:
http://news.yahoo.com/s/ap/20080910/ap_on_go_co/oil_speculation
off-topic but worth reading.
I repeat the link:
here
"In this moment Intrade predicts Mccain will win 50.6 -49.5 , versus Obama
I think is the first tima that happen in Intrade.At least since May."
Of course it does! Gordon Brown endorsed Obama yesterday in an article. There is no surer way to screw something up than having Gordo endorse it (http://www.order-order.com/2008/09/gordon-openly-backs-obama-president.html); just ask Andy Murray (http://www.order-order.com/2008/09/jonah-put-his-curse-in-writing.html).
I'm Mr. Anonymous with the post that received some feedback. I could address and debunk each of your splintered responses. Rather I want to restate my point.
My point is that the blogger repeatedly misuses or misinterprets information to make a point that obviously fits his preconceptions and politics. I don't disagree with the politics. I am appalled by the continuous lack of scholarship on this blog. In this case the blogger has taken the following sentences.
"These firms have used the money and other capital to invest in 11 fledgling Michigan companies that have added 40 workers in recent years."
"The two funds have made investment commitments of $116.3 million, or slightly more than half of their total capital."
From those sentences he brilliant deduces that $116M/40 jobs is approximately $3M/job. Genius! He is a professor in the business department at a major university! He can't figure out that the cost to taxpayers isn't derived from those two numbers. There is no way I would let my child take a college course from this guy!
Later in the Free Press article the writer quotes an expert who basically says this type of investment program works because other programs have had a positive monetary return on investment and generated 200 jobs.
Argue all you want about the success or failure of this particular government backed initiative. In my opinion the Free Press article doesn't provide enough information, on it's face, to determine it's success or failure. Regarding the bloggers reading retention skills and mathematics I give an 'F'.
I challenge the blogger to reread the article and referenced laws and information about the organizations and then continue to claim that the government program paid "$3 Million per new job created".
Pretty frickin' brave "Mr. Anonymous." Dr. Perry gives his bona fides. You provide thing gruel and personal insults. On tone alone I'd have to side with "the blogger."
anonymous 4:47,
Professor Perry supplied the link, so you can do your own research. He provided his opinion, and you can provide yours. It is his blog, and he does not censor out those who provide another viewpoint.
I can assure you that you would not be appalled if you take one of his classes. An education at a university is not to teach you what to think; it is to teach you how to think. His class fits that bill just fine. With your unsupported remarks and personal attack, and lack of argumentation skills, I think that you the one who has the challenge ahead of you.
Anon.
"It's" is a contraction of the words "it is"
"its" is the possessive (ie. mine, hers, theirs, its)
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