Wednesday, September 28, 2011

Don't let Missouri become Michigan

William McGurn had an excellent column in yesterday's Wall Street Journal outlining the perfect storm of failure in Michigan's attempts to woo businesses with massive tax credits.  Missourians should find the story oddly familiar.

In the column, Michael LaFaive of the Mackinac Center is quoted as saying "What (former Michigan governor) Granholm’s state investments were best at producing were press releases claiming thousands upon thousands of jobs — in the future." 

As McGurn puts it, Michigan's policy followed from the belief that "(p)oliticians and their bureaucrats will channel capital better than a market representing tens of millions of individual investor decisions," an argument that "is simply a form of the same economic narcissism that animates people who never lose the charming faith that they know bets how to spend other people's money."