Posted on 06/09/2014 10:12:59 AM PDT by MichCapCon
A story in MLive on the movie "Batman vs. Superman" being filmed in metro Detroit demonstrates why it is so hard to get rid of programs that are nearly universally seen as economically destructive.
Susan Dorris, Oakland County film commissioner, provided little concrete evidence of any real economic impact the project will have, despite Warner Bros., which made $1.2 billion last year, receiving $35 million in corporate welfare courtesy of Michigan taxpayers.
"I have heard the term 'cast of thousands,' and I don't know if that means it's digitally created or its actual people employed," she said. "But I do know they will be using a lot of extras."
Reading the article, people get the idea that the film subsidies are a great deal. They are not.
There is a lot of economic literature on film subsidy programs, and it is nearly unanimous that they are a poor way to spend taxpayer dollars. Conservatives, liberals and everyone in between find the cost to be much greater than the benefit.
It is only by focusing on the benefits — an alleged "hundreds of (temporary) jobs for crew members" and "6,000 (low-paying, temporary) jobs for extras" — and ignoring the costs that makes the program look good. Bear in mind that Michiganders have spent $450 million on film subsidies so far with no real gain in the number of actual film jobs.
MLive also reported that part of the production could take place at the Michigan Motion Pictures Studio in Pontiac. The studio missed three payments on $18 million in bond obligations, and so under a deal made in 2010 by then-Gov. Jennifer Granholm, the payments were covered by the underfunded state and public school employee pension funds.
This also is a case of concentrated benefits with diffuse costs and it is hard to justify state taxpayers propping up a film that admits to only having an impact in Oakland and Wayne counties. A select number of carpenters and caterers might see a temporary gain from the production if they are hired to build sets or provide food, but what good does that do all the other carpenters and caterers statewide who are forced to chip in to subsidize metro Detroiters?
Estimates show it costs about $15 to fill a pothole. The $35 million subsidy "Batman vs. Superman" is receiving could fill about 2.3 million potholes. Wouldn't that be a better use of that money?
Hollywood needs to pay their fair share.
I see Ben Aflec was at the Tiger game in Detroit the other day. He’s in town to collect some taxpayer money.
Do extras even get paid anything more thana nominal sum and bragging rights that they were in a movie?
Treat all businesses the same or its nothing but more crony capitalism.
How many Hollywood lefty celebrities whine about “Corporate Welfare”....seems to me that the Hollywood Studios are some of the biggest recipients of “Corporate Welfare” out there.
[ How many Hollywood lefty celebrities whine about “Corporate Welfare”....seems to me that the Hollywood Studios are some of the biggest recipients of “Corporate Welfare” out there. ]
BINGO
I work in entertainment, and I keep saying on these threads over and over: state and local governments have no business being in the motion picture and television business. You’re amateurs. You’re totally outgunned. They’re not going to cut you in. Why should they? Their job is to shake as much free state taxpayer money from your pockets as possible. Whoever gives them the most taxpayer money gets “Batman!” For taxpayers, it’s a race to the bottom.
But say you “win” and get “Batman.” What do you get out of it? Motel revenues for a few months. Free lunch if you work as an extra. That’s it. THEY’RE NOT GOING TO TRAIN YOUR KID TO BE A CAMERAMAN.
In Michigan, the situation is actually much worse, because you’re not just giving tax breaks — your rubes in state government are actively SPENDING TAXPAYER MONEY to attract production. They are millions and millions in the hole for the studio they built. Which sits empty most of the time. Oh, but don’t worry — the money to cover the mortgage is coming from STATE PENSION FUNDS. It’s outrageous.
States in the movie business are the state lottery all over again. How much money actually goes to the state? Virtually none. Because the state can’t win in the gambling business against professionals.
Actors, directors, and writers know that only fools put their own money into making movies. Only a foolish government puts taxpayer money into movies. LET THE STUDIOS FINANCE THEIR OWN PRODUCTIONS. That’s their business and they’re good at it. You’re not.
“I think that’s a little disingenious. The 35 million was a tax break given to them in order to entice them to come to Michighan to make the movie, correct? If that’s the case, then this article is assuming that the 35 million in uncollected taxes would have been made up elsewhere. That’s not necessarily the case because if they didn’t get that tax break then chances are they wouldn’t have come to Detroit to make the movie in the first place. So this piece is assuming they would have come anyways without the subsidy.”
That’s not the case. The $35 million is a direct subsidy (not tax break) from the Michigan treasury to film producers. That $35 million would be much better spent elsewhere.
“That $35 million would be much better spent elsewhere.”
Why not just issue checks directly to motels, restaurants, and local unemployed extras?
“But that makes no sense!” scream the state film commissions.
Yeah, neither does giving 35 million dollars to Warner Bros.
bkmk
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