Eight major business subsidy deals promoted by Gov. Gretchen Whitmer as "generational" investments have delivered just 602 jobs out of 20,595 promised — a 3% fulfillment rate that's cost Michigan taxpayers $1.8 billion so far. That's according to a new report from the Mackinac Center for Public Policy released Thursday, which examines the state's most high-profile economic development projects since 2019. The deals were supposed to reshape Michigan's economy, but the reality has fallen dramatically short of expectations.
Since 2019, Whitmer has authorized approximately $6.9 billion in subsidies to select businesses, with $2.7 billion committed to the eight major projects that received widespread media attention. The state has already transferred $1.8 billion in taxpayer funds to companies or local economic development agencies. The outcomes tell a grim story: two projects were canceled outright, two resulted in little more than vacant sites, two supported existing auto plants, and two battery plants remain under construction but have already reduced their projected job totals. Previous Mackinac Center research on Michigan subsidy deals between 2000 and 2020 found that companies delivered just 9% of the jobs they promised — meaning Whitmer's major deals are performing even worse than that already low benchmark.
"These deals were supposed to reshape Michigan's economy, but they've delivered only a tiny fraction of the promised jobs while costing taxpayers billions," said James Hohman, director of fiscal policy at the Mackinac Center and author of the report. The report finds that business subsidies are often sold as necessary for growth, yet they consistently fall short. According to Hohman, lawmakers should be skeptical that handing out large incentives to select companies will produce broad economic benefits for Michigan residents.
The pattern isn't new, but it's getting worse. The report examines each of the eight major subsidy deals in detail, comparing initial promises to actual outcomes and evaluating the return on taxpayer investment. When billions in public funds are committed to private companies based on job creation projections, a 3% delivery rate represents not just failed expectations but a fundamental breakdown in how these deals are structured and evaluated. The findings suggest that Michigan's approach to economic development through targeted subsidies isn't working — companies aren't delivering on their promises, and taxpayers are left holding the bill. With billions more in authorized subsidies still on the books, the state faces a choice: continue betting on a strategy with a 3% success rate, or rethink how it tries to attract and grow businesses.