Michigan’s $630M Ford subsidy is no guarantee of new jobs
The last time Michigan gave Ford money to hire 3,000 workers, it promptly laid off another 3,000
Giving Ford subsidies is no guarantee of job growth, however. Last year, Ford received $100 million to spend on hiring 3,000 new employees, but it promptly fired 3,000 other employees.
Ford predicted that it would lose $3 billion this year on electric vehicles after a loss of $2.1 billion the previous year. Ford is aware that it is losing money with its shift to EVs, yet the company continues to pursue this path. Michigan government is helping fund those decisions.
Michigan has been facing a downward turn in population, and new jobs could help with this problem. But a constant flow of subsidies to Michigan’s biggest companies is unsustainable.
This is wasteful government spending on big businesses that refuse to make responsible financial decisions. The way to bring workers back into Michigan is to promote good business practices, not to fund more irresponsible choices.
Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.