Rep. Steele: Michigan needs an authentic economic development plan, not more corporate welfare – Mi House Repubs

Rep. Steele: Michigan needs an authentic economic development plan, not more corporate welfare

State Rep. Donni Steele released a statement today regarding Michigan’s lack of a longstanding economic development strategic plan. Under the leadership of Gov. Gretchen Whitmer, the state has become reliant on corporate handouts to inflate a struggling business climate. Democrat leadership has repealed right-to-work protections, emboldened aggressive anti-business union tactics, and enacted energy mandates that threaten Michigan industry and the livelihood of residents.

The Sustainable Development Goals (SDGs)

1. No Poverty
2. Decent Work and Economic Growth
3. Reduced Inequalities
4. Sustainable Cities and Communities
5. Climate Action

“The only economic development strategy the governor has adopted is throwing heaps of taxpayer dollars at large corporations in a last-ditch effort to restore our struggling economy,” said Steele, R-Orion Township. “These policies don’t work. The state injects large corporations with a massive cashflow to make everything seem okay. Communities are promised new jobs, families buying houses, and enrolling more kids in local schools. Just when it all seems like its working, the struggling economic climate catches up, and the layoffs start, leaving broken communities left picking up the pieces.”

Last year, General Motors Co. announced they would lay off nearly 1,000 workers at the Lake Orion assembly plant. The layoffs came after GM decided to stop producing the Chevy Bolt EV and Bolt EUV, which were plagued by fire concerns from defective batteries.

“I was still serving on the township board when GM received MEDC money and promised us all these new jobs,” Steele said. “We secured housing developments, road funding and tax rebates; built parks and walking paths; and did everything possible to get our community ready for all these new workers and the expansion. It was great for a minute. But then cars stopped selling, and GM announced it would start laying people off. We cannot continue with failed policies that give people and communities this false hope. It doesn’t work and leaves communities like mine worse off than we were before the government got involved. Free markets create a healthy economy, not the government.”

Instead of strategically planning to support Michigan businesses, the governor proposed the heavily criticized High-wage Incentive for Regional Employment (HIRE) plan, widely considered Good Jobs 2.0. Despite totaling nearly $200 million in corporate welfare, no verified jobs were created from the original Good Jobs program. The Good Jobs 2.0 legislative package does not contain legislative oversight measures, substantive claw-back provisions, or other methods to increase transparency with taxpayer dollars.

A recent investigation found that 4 in 10 jobs claimed to have been created with taxpayer subsidies will pay below the state’s median annual base wage. Of the $335 million in taxpayer funds spent to subsidize job creation, $228 million went to create jobs that pay less than the median income.

“No business owner wants to invest in a state where they can’t afford to pay people a fair wage even after receiving taxpayer dollars,” Steele said. “Yet, the governor still sees corporate welfare as the solution to the shrinking population and widespread layoffs. At worst, Good Jobs 2.0 will create no new jobs and will fail. At best, it will still be another failure that creates some new, low-paying jobs that will attract no one. Michigan workers are leaving because they want to be able to support their families with one job. Creating more low paying jobs and just labeling them different or new isn’t going to bring people back.”

House Republicans have called for the state to develop a wholistic economic growth plan. This starts with ensuring Michigan workers have good-paying jobs that give them the freedom to support their families on one income. Instead of trying to bribe large corporations to move here, Republican representatives like Steele are focused on creating a healthy economic environment that will benefit workers, their families and businesses alike.

Conclusion

• The lack of a longstanding economic development strategic plan in Michigan has led to a reliance on corporate handouts.
• The current policies of injecting large corporations with taxpayer dollars have proven ineffective and have resulted in broken communities.
• The proposed Good Jobs 2.0 plan lacks oversight measures and fails to increase transparency with taxpayer dollars.
• An investigation revealed that a significant portion of jobs created with taxpayer subsidies pay below the state’s median income.
• Michigan workers are leaving due to the inability to support their families with one job.
• House Republicans advocate for a wholistic economic growth plan that prioritizes good-paying jobs and creates a healthy economic environment.

SDGs, Targets, and Indicators Analysis

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 8: Decent Work and Economic Growth
• SDG 9: Industry, Innovation, and Infrastructure
• SDG 10: Reduced Inequalities

The article discusses the lack of a longstanding economic development strategic plan in Michigan and the reliance on corporate handouts. It also mentions the layoffs at General Motors and the failure of the Good Jobs program. These issues are connected to the goals of promoting decent work and economic growth (SDG 8), fostering industry, innovation, and infrastructure (SDG 9), and reducing inequalities (SDG 10).

2. What specific targets under those SDGs can be identified based on the article’s content?

• Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading, and innovation.
• Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities.
• Target 9.2: Promote inclusive and sustainable industrialization and foster innovation.
• Target 10.4: Adopt policies, especially fiscal, wage, and social protection policies, and progressively achieve greater equality.

Based on the article’s content, the targets related to these SDGs include achieving higher economic productivity through diversification, technological upgrading, and innovation (Target 8.2), achieving full and productive employment and decent work for all (Target 8.5), promoting inclusive and sustainable industrialization and fostering innovation (Target 9.2), and adopting policies to achieve greater equality (Target 10.4).

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Indicator 8.2.1: Annual growth rate of real GDP per employed person.
• Indicator 8.5.1: Average hourly earnings of female and male employees, by occupation, age group, and persons with disabilities.
• Indicator 9.2.1: Manufacturing value added as a proportion of GDP and per capita.
• Indicator 10.4.1: Labor share of GDP, comprising wages and social protection transfers.

The article does not explicitly mention these indicators, but they can be used to measure progress towards the identified targets. These indicators include the annual growth rate of real GDP per employed person (Indicator 8.2.1), average hourly earnings of employees by various categories (Indicator 8.5.1), manufacturing value added as a proportion of GDP and per capita (Indicator 9.2.1), and the labor share of GDP (Indicator 10.4.1).

4. Table: SDGs, Targets, and Indicators

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Source: gophouse.org

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