Corporate Welfare Runs Wild In Michigan

Michigan taxpayers were promised a jobs boom, but Gretchen Whitmer’s biggest subsidy deals have so far delivered a staggering price tag of nearly $3 million per job.

Story Snapshot

  • Whitmer’s eight major corporate subsidy deals spent about $1.8 billion but produced only 602 jobs, around 3% of the 20,595 promised.[5]
  • That works out to almost $3 million in taxpayer money for each job created under these headline projects.[1]
  • Bridge Michigan finds Whitmer’s broader incentive record is also weak, with only about 22% of promised jobs showing up statewide.[4]
  • Decades of data show Michigan’s corporate subsidies rarely deliver, with only about 9% of promised jobs becoming real positions.[6]

Whitmer’s “Generational” Deals: Big Promises, Tiny Results

Governor Gretchen Whitmer sold eight huge corporate subsidy packages as “generational” game-changers for Michigan’s economy.[5] These deals offered a combined $2.7 billion in state support to large companies, with the governor promising 20,595 new jobs in return.[5] According to analysis from the Mackinac Center, about $1.8 billion of that money has already been transferred to companies or local development agencies.[5] Yet those banner projects have produced only 602 actual jobs, roughly 3% of what Whitmer announced.[5]

James Hohman, the author of the Mackinac Center report, notes that none of Whitmer’s major deals are on track to deliver what the governor originally promised.[6] Some projects resulted in little more than vacant land or underused facilities despite heavy public investment.[6] When taxpayers spend $1.8 billion for 602 jobs, each position effectively costs nearly $3 million.[1] For conservative readers who value frugality and free markets, this looks less like economic development and more like classic corporate welfare with poor returns.

Wider Record: Billions Spent, Promises Still Missing

Whitmer’s problems with job promises are not limited to those eight mega-deals. Bridge Michigan reviewed hundreds of pages of state records and found that, since 2019, Michigan has paid $995 million in subsidies to 102 companies, which delivered 13,079 jobs.[4] That is only about one-fifth of the jobs originally promised under those programs, and the average cost still comes out to more than $76,000 per job.[4] The state has pledged $2.46 billion to 340 companies, with firms promising 65,000 jobs, but only around 22% of those jobs have materialized so far.[4]

Even more troubling, Bridge reports that Michigan has poured hundreds of millions of dollars into 54 projects that, as of the latest reports, have not created a single job.[4] Another Mackinac Center study looking back two decades found that, on average, only about 9% of the jobs touted in Michigan subsidy announcements ever became real positions.[6] In simple terms, when politicians say a deal will bring 1,000 jobs, history shows Michigan usually gets about 90.[6] This track record should raise alarms for taxpayers who are tired of big promises, weak results, and constant pressure for more spending.

Why Corporate Subsidies Keep Failing—and What Conservatives Want Instead

Economists and watchdog groups have long warned that these kinds of corporate handouts are a bad way to grow real, lasting jobs.[1] Studies of business subsidies in other states, like New York and Ohio, show the same pattern: most projects fail to meet job goals, and billions can be wasted every year with little benefit to workers or families.[17] Research on hiring subsidies also finds that they may briefly bump employment but often create mostly low-wage jobs and carry heavy long-term fiscal costs.[19] Put simply, the math rarely works in favor of ordinary taxpayers.

For conservatives, the lesson is clear. Michigan does not need more centrally planned schemes where politicians pick winners and losers with other people’s money. It needs broad, simple rules that let businesses grow without special favors: lower taxes, reliable roads, affordable energy, and safe communities. Whitmer’s record—$1.8 billion spent for 602 jobs at nearly $3 million apiece—shows how far corporate welfare strays from those principles.[5] Instead of more subsidies and photo-op announcements, Michigan families and workers are looking for honest numbers, real accountability, and policies that respect every taxpayer dollar.

Sources:

[1] Web – Big Win, Michigan! Whitmer Drops $1.8 Billion for 602 Jobs … That’s $3 …

[4] Web – [PDF] $1.8 BILLION 602 JOBS – Mackinac Center

[5] Web – A first for Michigan’s $2.4B SOAR business incentive program

[6] Web – Michigan Senate race: Is it true that no jobs were created after SOAR …

[17] Web – Governor Whitmer Announces More Than 1300 Jobs, $240 …

[19] Web – Money for Something: Job creation and job quality standards in state …