Liberal & Conservative Think Tanks Agree
Film incentives do not create jobs and grow the economy.
An article in the Michigan Capitol Confidential informs us all that think tanks on all sides of the ideological spectrum agree that government goodies, i.e. refundable tax credits, have not done what politicians tell us they are supposed to do.
There are plenty of policies where economists can find different effects, but the studies of film incentives are clear. As Dr. Michael Thom, a professor at the University of Southern California, recently wrote:
"Think tanks from across the political spectrum — including the liberal Center on Budget and Policy Priorities, conservative American Enterprise Institute, libertarian Reason Foundation, and nonpartisan Tax Foundation — have argued that [film incentives] don’t succeed at creating jobs or growing the economy.
Scholars tend to agree. Multiple peer-reviewed studies suggest that tax incentives targeted at specific industries do not generate long-term growth. They do little more than lure states into a competitive bidding war, where each state tries to outdo the others by spending more and more on tax incentives."
So it appears that our Michigan politicians who worked to end the film subsidies here in Michigan were correct. At least as the numbers show, maybe not for the campaigns for those who fought against ending them.
Let’s discuss this tomorrow (Monday) on my show The Live with Renk show, which airs Monday through Friday 9 a.m. to noon, to let me know your thoughts at (269) 441-9595.
Or please feel free to start a discussion and write your thoughts in the comment section.