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    Michigan, Wisconsin, and Tennessee  were all competiting against each other in order to bring the GM small car plants to their state.  Wisconsin was willing to offer GM $409 million in tax cuts and other incentives.  GM rejected this proposal due to the over $1 million dollar package that Michigan had to offer.

    .

    The plant is to create 1,200 jobs, which would help state unemployment . Many workers with technical and engineering backgrounds are now looking for work, due to all the problems with the auto industry.  The plant will also greatly help out the economy, and might even bring more people to Michigan, positively affecting business.  This could bring Michigan out of the current slump that it is in, and maybe bring it back to when Michigan was doing very well because of the auto industry.

    Many people are anxious for the auto plant to come to Michigan, but many others are upset that Michigan would offer such a high incentive package.  Michigan is already having many problems with the state budget, and the incentive package could end up backfiring if the plant fails.  GM has recently reorganized and is now owned mainly by taxpayers due to bankruptcy.  Should Michigan be so eager to bring a company to the state that is clearly in financial trouble? Michigan put so much money into the offer, and could lose all of that money if the plant doesn't do as well as expected.  Bringing the jobs to Michigan seems like a great thing in the short run, but all of those people could lose their jobs again if the plant fails.

    Some argue that it might be a good idea for Michigan to try and diversify its economy, instead of constantly focusing on the auto industry.  The auto industry has failed Michigan in the past, so why should Michigan continue to put all of its faith and money back into it? Shouldn't Michigan be looking into new technology and new innovations, such as alternative fuel and energy companies?

    There are very differing opinions, and only time will tell if this was a good decision or not. It seems like a very risky endeavour, but something risky might be needed in order to pull Michigan out of its current economic slump.

     

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    Marie Hallberg is the commerce & regulation correspondent for the Michigan Policy Network and a first-year student at Michigan State University. Currently, she is a no preference major, but is interested in either a teaching or communications degree. Marie is very excited to be attending MSU and anxious to explore the opportunities that are available to her. Marie is originally from Illinois and enjoys hanging out with her family and friends, reading, and being in band. Her career aspirations include a job focused on serving and working with people, possibly in the guest service area. She is very interested in using her experience on the Michigan Policy Network to help better her understanding of the Michigan government and how its policies ultimately affect the citizens of Michigan.