FRIDAY FUN STUFF II

A few loose thoughts as we wrap up the week ...

[1] I'm sure the relationships that Grand Rapids Press publisher Danny Gaydou has with potential beneficiaries of any government bio-tech largesse has nothing to do with this, but it's clear that River City's daily is in the grip of bio-tech mania.  Wherever there's an angle, a story now gets connected to "life sciences" or "bio-tech".  The latest example is a short article on the 90th anniversary of Grand Rapids Community College buried on page B4 of last night's edition.  The headline reads:  "What began as a U-M feeder school now trains for life sciences".  [My emphasis.]

The bio-tech bandwagon is a-rolling, folks.  If you have to get on it, just make sure you jump off before it goes over the edge of the cliff.  How will you know?  It's when the Van Andel Institute changes its mission for the fourth time and becomes a weight-loss clinic.  Or else, you can keep reading here. ;)

[2] Van Andel's panhandle:  This week David Van Andel, chairman and CEO of the Van Andel Institue, graciously announced that he'll accept either the state senate Republicans' one-billion-dollar bio-tech bond hand-out or Guv Jen's two-billion-dollar high-tech bond giveaway.  All that he demands for his neutrality is that he has a say in how that taxpayer funds get spent.  Meanwhile, no further news regarding what if any commitment the Van Andels are making from their Amway fortune to their namesake institute.  As I warned you, folks, the VAI is a Van Andel family operation set up to run on other people's money.  Watch your wallets!

[3] Guv Jen says we should support her $2 billion high-tech bond proposal because it will create 72,000 jobs that "could not be outsourced".  Short of repealing the Thirteenth Amendment and re-introducing chattel slavery, I am not exactly sure how the good governor plans to make good on that promise.  Well, the whole thing is rather silly anyway.  How does Granholm have the slightest clue how many, if any, jobs would result from the State of Michigan picking the winners and losers in the high-tech bond lottery?  How does a lawyer-turned-politician, whose knowledge of making a profit comes not from private enterprise but instead the McNamara machine, think she knows the ups and downs of venture capital investment well enough to make such a promise of success?

By the way, dear readers, that's her plan.  Granholm wants to use the funds raised from her two-billion-dollar bond to buy for the State of Michigan stakes in high-tech businesses and start-ups.  You'd think with all the casinos around the state, Guv Jen would have plenty of other opportunities for rolling the dice other than this boondoggle with taxpayer dollars.

[4] At least Dick DeVos Jr. in his bid to unseat Granholm as governor next year went on the record here in town on Wednesday that he disapproves Guv Jen's bond proposal because the state shouldn't be in the business of picking winners and losers -- just like we said here a couple of months ago.  On the one hand we're flattered that Dick Jr. thinks well enough our pontifications on these matters to incorporate them into his campaign rhetoric.  On the other hand we're disappointed that he didn't credit us with his insight into the matter.  Perhaps he remains a bit miffed at us for our comments regarding his stewardship of Amway and Windquest. ;)

[5] And speaking of Dick Jr., a final thought crosses my mind.  Remember the "Young Turks" of River City that the Grand Rapids Business Journal lauded about ten-fifteen years ago?  The movers and shakers of the rising generation who were going to remake Grand Rapids included Dick Jr., Steve Van Andel, David Wagner, and John Kennedy.  Their paths to glory were Amway, Old Kent, and Autodie.  Throw in Butterworth and Blodgett hospitals (Dick was president of the Butterworth Foundation and Wagner the chairman of Blodgett) and we can see how these "Young Turks" unmade our town.  None of those institutions that had defined River City exist today.  This will merit further thought.

Comments

[Andy Postema]

OK I'll admit the turkeys are funny, but why shouldnt we invest in the future? Granholm is not off her rocker to create venutre capital in a state that has had no culture for it.

Andy

[The Executive Director]

Hi, Andy.

There is plenty of wealthy people in Michigan. If they haven't found the need to create local venture capital, I don't see how a politician with no business experience spending someone else's money will succeed in pulling off what they haven't.

Credit to Granholm for identifying an important reason why high-tech business either do not start here or, if they do, soon leave. The venture capitalists are elsewhere.

But that's not the only reason. The SBT is an onerous tax designed to collect from those things government bureaucrats do not think a business can easily move: Plant, equipment, and employees. High-tech businesses tend to be capital intensive and are at the outset punished by the state tax system.

I think a general reform of the state's business tax and regulatory system that focuses on profit and equal treatment (no subsidies, credits, or breaks) would kickstart our economy in no time. Businesses, high-tech and low-tech, would stay here and grow, and the venture capitalists will come to them.

Regards,
Bill Tingley
Executive Director