Written by Kelly Kinkade | 17 June 2010

Lansing and Detroit demonstrate Political Multiple-Personality Syndrome.

On the one hand, Lansing has provided incentives for the movie industry. For example, it is no accident that Michigan (known in the movie making industry as the “high-five state”) is always a top-contender for new movies. The increase of movies being filmed in Michigan is a direct result of substantial tax incentives and active recruitment. Spending in Michigan by movie producers is expected to reach half a billion dollars this year. Add to that approximately $25 million pumped into the economy around Detroit from the new ABC fall television series “Detroit 1-8-7.”

ABC’s new police drama will be filmed entirely in Detroit. Executive producer of the series Jason Richman said he wants people to become attached to the characters and look forward to returning every week to Detroit. Over $25 million and weekly publicity of the city are good things.

Lower taxes and targeted recruiting have multiple benefits to Michigan. Private industry money invested in Michigan increases. Private sector jobs in Michigan increase. Inevitably, tax revenue to Lansing increases - without raising the tax rate. A fringe benefit is the priceless publicity for Detroit and Michigan as a whole. One hit movie or television series can do more for Detroit’s image than thousands of commercials in the Pure Michigan marketing campaign.

A careful observer, however, will see the other personality come out of Lansing.

Lansing is proposing a second bridge to facilitate traffic across the Detroit River. Crossings between Detroit and Windsor account for 25% of all trade between the US and Canada. Under the plan passed by the Michigan House, the new Detroit River International Crossing would not pay for its operating expenses until 2040. The plan would take advantage of an offer by the Canadian government to lend Michigan its share of the $2.3 billion sticker price on the second bridge. Canada’s "gesture of international goodwill" comes with the condition that they get to award the construction contracts to companies of their choice. The bridge would be built and operated by a joint public-private partnership.

Michigan's Department of Transportation released a report indicating the proposed bridge would mean a drop of nearly 20% in traffic over the privately owned and operated Ambassador Bridge. Canadian-born governor Jennifer Granholm is in favor of the proposed bridge. Governor Granholm, who was born in Victoria, British Columbia, Canada, has no qualms with entering into a partnership that will compete with private companies and which would tax American companies and citizens to help cover losses from the state partnership. Governor Granholm, who is a Canadian citizen, praised her home country’s offer to lend Michigan $550 million in exchange for building the proposed bridge with Canadian contractors.

There are the two personalities of Lansing. Both are clearly playing out in Detroit. Lansing knows how to bring private investment from the movie-making industry into Detroit. They know how to increase American jobs and increase state tax revenue. Lansing also knows how to build great engineering projects, such as bridges, in a different way. They can build things in a way that increases jobs in foreign countries. They can guarantee an increase of investment and tax revenue into foreign economies.

Knowing how to solve our problems is a good thing. Michigan’s economic suffering is not due to the complexity of problems assaulting the state. We know the solutions. Life does not need to be this complicated. The high-five state has had amazing periods of prosperity and will have more – when politicians with divided loyalties are replaced by adults.