Michigan

Today's Wall Street Journal has an article on Michigan's gubernatorial race and the tax incentive-happy incumbent, Jennifer Granholm. An excerpt:

She is offering tax incentives and cash loans in return for promises -- which critics describe as vague -- to preserve or create jobs. In April Ms. Granholm gave General Motors Corp. $40 million in tax breaks for a pair of factory retoolings. Last month she attended the ribbon-cutting of a drivetrain plant in Flint, which the company rehabbed in return for $28.2 million in state tax breaks. In August Ms. Granholm offered Ford Motor Co. $151 million for investments she claimed would retain more than 50,000 Michigan jobs.

As economic policy, the value of Ms. Granholm's corporate largess is questionable. The state aid is minuscule compared with losses the auto makers face. GM says the breaks are unlikely to swell its payroll. And even with the $151 million on offer, Ford appears bent on reducing its global work force by 40% within three years -- a move Ms. Granholm's critics say could wipe out 7,000 Michigan jobs.

"A good announcement here, a good announcement there; the fact is that government handouts don't create jobs," state Republican Party Chairman Saul Anuzis says.