When the Circus Comes to Town, Does the Economy Improve?
Published July 22, 2008
The State of Michigan is now going into its fourth month of movie madness. Currently, the state is hosting upwards of 60 movie productions. Many are in and around the metro Detroit location.
The main reason for the sharp upturn in the local film business is the cherry deal the state is giving film producers. Our government, in its infinite wisdom, passed into legislation this wonderful windfall for a certain privileged few. If you are a producing a movie and spend a dollar here, you will get 40 cents back, courtesy of the state of Michigan. (If you think that doesn’t sound like much, put it in these terms: Our business spends upwards of $10,000 in gasoline every two weeks. That’s like getting $4,000 back every two weeks. Woo-eee! If only that would happen for me, I might be able to afford to live here.)
Some in the state think the rush of movie making may lead into a surge in the economy. Heaven knows we need it. The sensible might disagree. My mother would have said this is equivalent to giving the milk away for free.
I have no qualms with some people getting a sweetheart deal to do business here. For those who are so fortunate, I say, Hooray for you! And pass the margaritas! However, I do have a problem with how short-sighted this legislation is, and I am also worried about the ultimate costs to those who are stuck living here.
This week, I had a conversation with an ex-employee who works for a local video production company. His company has recently seen only a slight increase in available work, and certainly not enough to hire more people. This is because once the producers leave, they take their film with them, to be mixed and edited in Hollywood and elsewhere. He sadly related that ten years ago was actually the busiest time for his company, when the Big Three was still using local video companies. That’s right, the Big Three took their film work out of Michigan, and it has stayed out. The only auto maker still doing work with his company is Toyota.
Right now, the entire state is in the honeymoon stage with the film producers and production companies. My entire office staff spends its off time chasing down movie stars and hanging out at location shootings. Meanwhile, on Friday, Clint Eastwood’s production of Gran Torino closed down the main artery through town, which happens to be the only way I can get home. It’s now become annoying on a personal level.
- When the Circus Comes to Town, Does the Economy Improve?
- Published: July 22, 2008
- Type: Opinion
- Section: Politics
- Filed Under: Politics: Local and Regional, Culture: Celebrity, Culture: Business and Economics, Video: Film and TV Business
- Writer: Joanne Huspek
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Comments
Joanne, doesn't Detroit have a history of coming up with big new economic plans that fizzle out?
However, I do have a problem with how short-sighted this legislation is, and I am also worried about the ultimate costs to those who are stuck living here.
Joanne,
There is a reason for state legislators always taking junkets away from the capital, you know.... It goes beyond just finding a place to sleep with that cute number on the side. The honorable legislators don't want to be stuck in well, Michigan....
I received an email from a friend in Minnesota who says that his state's movie commission (a leader in strongly marketing the state for movie making) is upset over Michigan's sweetheart deal. But, there's no way they can compete against it.
And yes, Baronius, the entire state is known for hare-brained schemes to make money.





Nice piece, Joanne. Very amusing.
I think whether a place gets any economic benefit from a movie filmed there all depends on the movie. It helps if it's a hit, obviously, but a more crucial factor is whether the location is a central character in the movie.
New Zealand got a tremendous boost from the Lord of the Rings trilogy, for example, and I'm sure there were more modest but still significant bumps for Lancaster County, Pennsylvania and for the California Central Coast wine region from the films Witness and Sideways, respectively.
Tourism is always going to be the first beneficiary, of course, but the idea is that the stimulus will eventually trickle down to other sectors of the economy.
That said, Michigan does seem to be a wee bit extravagant with its incentive package. We'll see how it goes.