Seems like we are seeing more reports and opinions that echo many of the arguments I make on this blog:
I and most of those with whom I work are part of the one percent who are being protested these days. While I find the protesters’ messages confusing and misguided, I can certainly sympathize with the overall concept that the system inappropriately favors the rich. We probably need higher tax rates, but we certainly don’t need to be subsidizing large corporations and rich individuals like myself just to create or maintain relatively few jobs in locations that would not be economically viable if not for those subsidies.
Here in the US, much of the occupy wall street protests have been about discontent with trickle-down economics: The idea that government should hose the rich with tax breaks and favorable policies and the results will “trickle down” to the rest of the population and even lead to higher government revenue.
This policy has dominated the US for the better part of 30 years and we now find ourselves with huge debts, large income disparities, and a collapsing economy.
The same idea is at work with film subsidies. If a regional government provides huge subsidies for incredibly rich US Studios, they will bring work to the region which will lead to more economic activity, higher incomes, and higher tax revenues. In the short run you may get a bump but in the long run we’ll probably end up seeing the same thing that is happening in Michgan, and New Mexico.