$824 Million Michigan Incentives to Lure $7 Billion in GM Investments (Other Types of Strategies)

 If your interested in Michigan's economic landscape you should consider reading the article 'GM wins $824 million in incentives from Michigan to lure $7 billion in EV investments' by Chad Livengood (Livengood, 2022) as it provides a nice overview of the event. In this case The Michigan Strategic Fund is using an incentive to partner with the business (There are longer term benefits at play of keeping emerging tech and other associated industries attracted to MI.). It works as a strategy but is a little controversial because some might feel we should not pay companies (In this case I agree for the most part with what they are doing.). An alternative strategy to use in the future is to invest that amount in some infrastructure (and others i.e. training grants, land acquisition, etc... packet.) that will help that company and other companies creating wider benefits. While they may have the same tax rate they also have higher returns from the improvements as they can obtain and ship resources cheaper then their competitors. Likewise, there are other benefits that impact both people and businesses that can use these "build out" adaptable infrastructures (We don't do well in calculating they non direct benefits but they are as or more important than many of the measurements I have seen. There are other value developments that can have an impact on business like active wide and focused marketing to international investors. Looking for other companies along the supply chain to create new technologies and trying to lure them. Directories for people looking for suppliers, etc... etc...etc..... Just a few ideas that we are not limited to a single tax incentive tool. It works...but we might be able to do other stuff as well to make a unique international appeal as a state.)

Livengood, C. (January 25th, 2022). GM wins $824 million in incentives from Michigan to lure $7 billion in EV investments. Auto News. Retrieved January 25th, 2022 from https://www.autonews.com/manufacturing/gm-wins-824-million-incentives-michigan-lure-7-billion-ev-investments