Michigan cuts State Spending: Democrats Don’t Like it

Gov. Rick Snyder (R-MI)

Among other ways to cut Michigan’s state spending bill, Gov. Rick Snyder has either proposed or signed measures to do the following.

  • Cut Michigan’s state unemployment duration from 26 weeks to 20 weeks. His reasoning was that unless he signed something, the current extensions would suddenly expire in April, throwing many people out of unemployment immediately. If he signs the extension then it allows unemployed people another 20 weeks of time to spend either trying to get a job in Michigan or move to another state where private employers haven’t been quite so thoroughly destroyed. For some reason, among Democrats this is seen as a terrible decision. Even if failing to sign this compromise ends up ending all unemployment insurance for the long-term unemployed it’s terrible. They are making a logical leap I can’t follow. I think you’d have to jump like a bullfrog to follow that leap.
  • Restrict Michigan’s corporate welfare for film productions to $25 million in new subsidies for next year. When the state gives away a million dollars, $2 million ended up in paychecks (for someone), and $6 million went through the state economy. However, most of those paychecks are for big out of state stars like George Clooney. When you do the accounting, for every dollar the state gave movie companies it collected 17.5 cents in new taxes. Now if you or I spent a dollar to earn 17.5 cents we’d quit doing that. If we had a business that spent a million to earn 175 thousand we’d have to shut its doors. But if we have a state that does that then Democrats would insist we spend more!
  • He has also called for making pensions taxable, lowering taxes on businesses (aka the same employers who would hire people if they could afford it), and cutting aid for the working poor.

He seems to have a grasp of basic economics. If you make something more expensive you’ll have less of it. And if you make it cheaper you’ll have more. To increase the number of employers you cut taxes on employers (e.g. businesses). To decrease the people on unemployment, stop subsidizing unemployment so much. To decrease the number of people who settle for staying poor, stop subsidizing them in their low paid work.

And for goodness’ sake stop spending millions of dollars to get 17.5 cents back for each dollar spent. Whoever thought that insanity was a good idea?!?!?!

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March 29, 2011 10:48 am

Initially I was not impressed with Rick Snyder. He is a quiet man who has a style completely opposite of NJ Gov. Christie. Now that I am seeing his proposals I am warming up to him. I wonder if Louisiana Governor Bobby Jindal will notice what he is doing and reconsider his position on film industry tax credits.