Sunday, January 14, 2007

Blackmail succeeds. The Political Economy just got bigger in Michigan

US state Michigan has agreed to give Ford Motor $300m (£155m) to keep open six of its factories in the state.

The move, which amounts to subsidies of about $23,000 per worker, could help safeguard 13,000 jobs in the state.
Half of the $300m will come from the state government, which will borrow $150m against an already-swollen budget deficit.
Expect many more failed attempts
to prop up the that old, worn-out
hag called the Real Economy.

She's already been rode hard.

Full report.