You Have to Love It: Rick Snyder will get Michigan Moving Again by Killing its Film Industry

by: jsalera

Sun Oct 24, 2010 at 14:23:55 PM EDT

But the worst thing you can do with incentives is what Snyder is doing: talk about killing them. Hollywood is a small world, and no one wants to plan a film -- which can be a yearlong operation -- in a shaky environment. Snyder's possible election already has future productions reconsidering.

So forget phasing these incentives out. The minute Snyder announces that, he might as well kill them outright. No one will build. No one will invest. - Mitch Albom

 Rick Snyder is indeed a genius. Isn’t that what the word nerd is supposed to imply? Although I still intend to vote for Virg Bernero, I feel today that Rick Snyder has to be recognized for the ingenious solutions he is proposing for Michigan should he become governor. You see I like when politicians think out of the box.

In business, it is always stressed a company needs continual improvement. Govenment is no different.  Yesterday’s improvements are not enough. Present and future improvements are always necessary. All kidding aside, I completely agree with that business philosophy. I especially like it when the creativity of the workforce is employed right down to the lowest person in the chain. No one knows their job better than the person doing it. That could be the janitor, the machinist, the accountant or a worker in the state or local civil government system.

Here is where this applies to Rick Snyder: Mr. Rick Michigan has already announced his intention to kill the film industry jobs brought to Michigan by Governor Granholm. He is going to kill $600 million in revenue to get Michigan moving again.

It is a form of creative destruction that only someone of a nerd status can understand. After all, nerds are geniuses. Don’t you agree? Michigan residents should not be bothered by the notion that it doesn’t make sense because nerds, especially the tough ones, think at such a higher level than the rest of us.

Blogging for Michigan recently gave us an inside look into Rick Snyder's new nerdy idea. (Click here to read the Blogging for Michigan post about Ricky Snyder’s nerdy new idea to bring jobs to Michigan). BFM references a Detroit Free article by Mitch Albom that I will also reference. And, since Mitch Albom explains this new nerdy idea much better than I can I will let his words convey the message. Although, I must warn you up front that Mitch Albom clearly shows he does not fully understand the genius of Rick Snyder. (Click here to read the Detroit Free press article by Mitch Albom.)

If Rick Snyder is elected governor, we can say good-bye to the movie and television business.

He has called the film incentives "dumb" and "a gimmick." He claims they don't pay off and calls for phasing them out -- this during a campaign when candidates are usually evasive.

So it's pretty obvious: If Snyder wins, they’re gone. This would be bad for Michigan -- and, I fear, based on some misconceptions.

I was involved in bringing these tax incentives to our state. I helped with their creation, testified before the Legislature, met numerous times with the governor and her staff, and shared -- with other Michigan-connected artists -- our frustrating experiences in convincing studios to make films or TV shows here and employ Michiganders, only to be told the work was going elsewhere -- to states with incentives.

Back then, we advised that the only way to win this business was to jump to the front. For films and TV shows -- mobile operations that can set up fast -- cost is everything. If you offer 40% and someone else offers 35%, all things being close-to-equal, they're coming to you.

Here is where the nerdy creative destruction comes idea comes into play. Rick Snyder will throw away $600 million in revenue to Michigan to get Michigan moving again.

The idea worked. Within three years, we jumped from less than $2 million in film and TV activity to more than $600 million to date. Name me another business that grows that fast. Especially in Michigan.

Unfortunately, Albom then goes further in displaying he doesn’t get what it means to be “One Tough Nerd”

But this should be clear. First, we give tax incentives to all kinds of businesses (more than $3.5 billion to more than 500 companies under Gov. Jennifer Granholm, according AnnArbor.com). And second, isn't that partly what our tax money is for? To create jobs, ignite citizens and boost the image of our state?

It shouldn't matter to any of us that Michigan already gives tax breaks to the tune of $3.5 billion to business, because for this tax break Rick Michigan has a better idea. Albom goes on.

The best we have right now

We always said, at the beginning, you must give these incentives five years minimum. Let studios be built. Production houses, too. Let our crew base grow. The more we have talented editors, art designers, directors, etc. the more they will be hired from here and not brought in (because you get a bigger tax break for using Michigan people). And the more infrastructure, the more permanent jobs. Someone has to clean those places, answer phones, keep the books.

And we haven't even mentioned digital gaming -- a business much larger than movies and TV combined -- which is also part of the incentives. We've barely scratched that surface.

After five years, you re-evaluate. Maybe then you've hooked enough business to adjust the rates.

But the worst thing you can do with incentives is what Snyder is doing: talk about killing them. Hollywood is a small world, and no one wants to plan a film -- which can be a yearlong operation -- in a shaky environment. Snyder's possible election already has future productions reconsidering.

So forget phasing these incentives out. The minute Snyder announces that, he might as well kill them outright. No one will build. No one will invest. And OK, if that's what our citizens want, fine. But then what?

Do you think the state will be better off? Do you really envision some new better use of the money by our government? Like what? As I often want to say to these angry critics, so what's your great idea? What new industry that is growing, is tech-savvy and excites young people do you plan on bringing here? And how will you attract it to a Rust Belt, population-dwindling, economically choking state?

I can personally relate two small stories I have had with the Michigan film industry. A couple of weeks ago I was in a restaurant where I talked to the waitress who was very industrious. She barely ever stopped lugging around trays of dishes. She related to me that her boss was mad at her because she took a couple off days off to make $75 a day working as an extra in a movie based in Pontiac.

Last summer, I tried to come home one night using a lowly road call Hamlin when I found the police had it blocked off. I call Hamlin a lowly road because it doesn’t have much on it in that stretch of Shelby Township other than a few houses and businesses, a junkyard and a gravel pit. The next day at the convenience store on the corner the person at the counter told me that, if I remember correctly, a Clint Eastwood movie was shooting a scene the night before.

But I’m not worried, I am sure there are lots of nerdy new ideas for that lowly Hamlin road, Right? As for the waitress, she probably didn’t need the money anyway and how dare she take the time off her real job to be an extra in movie that was getting a tax break.

So even if I don’t get it at this point, just like Mitch Albom doesn't get it, I feel safe and secure knowing that if Rick Synder gets elected, it will all be ok.

After all, Ricky Snyder is “One tough Nerd.”

I bet he even has a nerdy plan to privatize the Mackinac Bridge.

WOW! What a genius.