Michigan's Economic Development Failures

Dome Magazine's cover story, "Desperate for Diversification: A brief history of Michigan's economic development strategies," correctly points out that Mackinac Center scholars have disagreed with the state's central planning attempts under both Republican and Democratic governors.

The article's title appears to borrow from something Michael LaFaive wrote in 2005's "MEGA: A Retrospective," which the magazine quotes:

"If these programs actually worked, we'd be fully diversified by now," Michael LaFaive, director of fiscal policy at the Mackinac Center for Public Policy, wrote in 2005. "Instead, we continue to lose the race for jobs while politicians concoct new economic chimeras."

The article also mentions, briefly, Michigan's tumble in economic status as the state has increased its attempts to pick winners and losers in the marketplace, rather than lowering taxes across the board and fixing a labor climate and regulatory regime that drives away job providers.

An in-depth look at the issue can be found in "The Michigan Economic Development Corporation: A Review and Analysis," written last year by LaFaive and Fiscal Policy Analyst James Hohman.

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