Oh.. I Really Told You So.. I Did The Math

I know I told you so..

In fact maybe a dozen or so times, but when I laid out the math the very FIRST time..  Someone should have paid a little closer attention.

The Film office folks used a Virginia Commonwealth University study to push for the implementing of the Michigan film credit, but no-one in the legislature seemed to notice the very large discrepancy between its figures and the proposed 42% in the Michigan plan.  The bad actors with stars in their eyes, and a full blown campaign by the Teamsters, and small production interests pushed it forward into production.

And now the results are in!  The Oscar for worst actor goes to [insert drum roll here] ..anyone who voted for this trash.  It seems I may have hit the proverbial nail on the head.  According to the Free Press:

“The state Treasury doled out $37.5 million in subsidies in 2009 and is expected to distribute about $100 million to the makers of TV and film productions in 2010. But the estimated additional state tax revenue generated by film-related economic activity comes to only $3.7 million in 2009 and $10.3 million in 2010, the report found.

An analysis of movie and TV job creation by the agency found that the average cost to the state per full time job in 2008 was $186,519, and $193,333 in 2009.”

Oh.. shoot.. and that from the state’s officials.    Yup.. I told you so.

I did.  In fact I laid it out quite well:

“LOOK.. the math says 2%.. 2% of film budget is what VCU was talking about! where did the other 40% come from? Oh my God, we are about to have some serious buyers remorse.. I hope we at least get royalties.. at least an autographed DVD…”

You know it..  I was a little freaked out about the 20X multiplier the state film office was pushing. (on behalf of the Teamsters and Michael Moore)

It really flows well with the recent developments of other major project sponsored by a business savvy state government.   I highlight a little misunderstanding between what the Governor claims and the reality as stated by a very conscientious legislator. Here:

“The fact is, A123 only has to have 300 new jobs to get over $100 million in checks (subsidies) from Michigan taxpayers. That’s over $300,000 per job of our money and over $700,000 per job of federal money (which is debt laid on our kids).  Real, independent studies show that these schemes, while getting some headlines, actually cost Michigan jobs, because existing businesses pay for those subsidies with higher taxes that would have gone to either preventing layoffs or hiring new employees.”

The original source for that being the capitol confidential online news site and its article “funny numbers they pull out of their backside.

The numbers used  when proposing these economic assistance deals nearly ALWAYS match the outcome like a a round peg to a square hole.  The particularly sad commentary about such things is that it takes a similar development of reasoning to figure out either.  In other words, what a four year old (or a fully matured chimpanzee) could quickly ascertain, might have saved Michigan taxpayers millions of dollars.

As I point out in the RightMichigan piece, the continued use of the MEDC, the film office or ANY economic development scheme or other economic stimulus programs for the political benefit of a few elected officials must end, and NOW.

Now.. do I get a star on the walk of fame?

1 comment for “Oh.. I Really Told You So.. I Did The Math

Leave a Reply

Your email address will not be published. Required fields are marked *

Time limit is exhausted. Please reload CAPTCHA.

Loading Facebook Comments ...