Question: But don’t we need the jobs?
Short Answer:
There are many unfilled jobs already in Mecosta County, and the compensation levels that Gotion purports to be paying have changed multiple times, from $29.42 per hour, or $61,000 per year (reported in October of 22), to $52,000 per year in March (as reported by Green Twp Supervisor Jim Chapman in his testimony to the MI Senate), to $45,000 per year in April 2023 (as reported on WXMI-TV).
https://www.themidwesterner.news/exclusive/ccp-gotions-promised-big-rapids-plant-pay-scheme-evolves-downward
Long Answer:
The question of job creation is always important, particularly in local economies like Mecosta County. However, the issue is not just about creating jobs, but about creating stable, reliable, and beneficial employment opportunities that align with the long-term interests and values of the community.
- Existing Unfilled Jobs: Mecosta County already has a number of unfilled job positions. This indicates a labor market that isn’t fully saturated. The focus should perhaps be on filling these existing vacancies, which are likely in diverse industries, thereby promoting a balanced and resilient local economy.
- Fluctuating Compensation Claims: Gotion’s inconsistent statements regarding compensation levels raise concerns about the reliability and stability of the jobs they propose to create. In October 2022, the reported wage was $61,000 per year. This figure then apparently decreased to $52,000 in March, as reported by Green Township Supervisor Jim Chapman, and further to $45,000 in April 2023, according to WXMI-TV. Such fluctuations in promised wages can be unsettling for potential employees and the community, as it casts doubt on the economic stability and benefits these jobs would bring.
- Quality Over Quantity: The quality of jobs is as important as their quantity. It’s essential to consider not just the number of jobs a new factory might bring, but also the working conditions, long-term job security, potential health impacts, and whether these jobs will actually improve the standard of living and economic health of the community.
- Economic Diversification: Relying on a single large employer can be risky for local economies. Economic diversification is key to resilience. If the community’s economic health is overly dependent on one industry or company, especially one with questionable practices and fluctuating commitments, it makes the community vulnerable to external decisions and market forces beyond its control.
- Economic Diversification and Its Importance: Economic diversification is crucial for any local economy to thrive and withstand external shocks. The dependence on a single industry or employer can be likened to putting all eggs in one basket, which is inherently risky. This is particularly true when the employer in question, such as Gotion in this case, has shown inconsistencies in its commitments and practices.
- Risks of Over-Reliance on One Employer: A single large employer can significantly influence the local economy, but this influence is not always positive. If that employer faces economic downturns, changes policies, or decides to relocate or shut down, the local community can suffer greatly. The economic history is replete with examples of towns and cities facing significant challenges when key industries decline or leave. For example, the decline of the auto industry in Detroit had long-lasting impacts on the city’s economy and its residents (Muro, Mark, and Sifan Liu, “Manufacturing’s decline is about more than Trump’s trade war,” Brookings Institution, 2019).
- Vulnerability to External Decisions and Market Forces: In the case of Gotion, a company with international ties and commitments, the local community’s economic health becomes vulnerable to decisions made in boardrooms far away and to global market forces over which the local community has no control. This vulnerability is exacerbated when the company in question has fluctuating commitments, as evidenced by Gotion’s changing statements about employee compensation.
- Benefits of a Diverse Economy: A diversified economy, on the other hand, can absorb shocks from any one sector and provides a more stable environment for growth. Diverse economic activities mean that the failure or downturn of one sector or company does not cripple the local economy. The resilience of diverse economies is well-documented. For instance, a study by the International Monetary Fund (IMF) found that countries with diversified exports experienced more stable and less volatile economic growth (“Export Diversification and Economic Growth,” IMF Working Paper, 2011).
- Long-Term Economic Health: Long-term economic health and stability are best achieved through a diversified economy. This approach supports a range of businesses and industries, fostering an environment where local talent and resources are utilized across various sectors, thereby reducing the community’s dependence on any single entity. The economic development literature supports this approach, emphasizing the importance of economic diversification in building resilient local economies (Rodrik, Dani, “Unconditional Convergence in Manufacturing,” Quarterly Journal of Economics, 2013).
- Alignment with Community Values and Long-Term Interests: Any new development should align with the community’s values and long-term interests. The introduction of a company with alleged ties to the Chinese Communist Party and the potential national security implications of such a relationship must be weighed against the short-term benefit of job creation.
In summary, while job creation is important, the nature and stability of these jobs, the integrity and reliability of the employer, and the broader impacts on the community’s economic health and security are critical factors. The community of Mecosta County deserves employment opportunities that are stable, well-paying, and aligned with their values and long-term interests, not just any job opportunity that comes along.