Government Spending

I was just finished an interesting conversation with my friend Craig about the proper role of government spending. He was trying to point out that government wastes money on useless things which I canagree to a certain point. However, not all governments spend lavishly. This morning for instance we had the Vice President of Travel Michigan before our committee to testify on the state's new advertising campaign to attract new tourists to the state. He wanted to show a DVD clip of the new commercials but the senate doesn't have any DVD players. We only have VCR's. Granted they are VHS and not Beta but not exactly high tech. I had to lug in a DVD player from home so we could view the clips this morning.

On a more serious note, Travel Michigan's presentation was very impressive. To view the adds, you can visit http://travelmichigannews.org/ads.htm. Last year, the state set aside $7.5 million from the 21st Century Job money to fund this marketing campaign. This was on top of the $5.7 million we spend in general fund money. This may sound like a lot of money but compared to surrounding states, we spend far less to attract visitors. Illinois spends $48 million a year in marketing. One interesting point about the money being spent for the campaign is that for every dollar spent, the state brings in $3.43 in new tax revenue. It's a convoluted formula but tourists do spend money when they come to Michigan and that generates lots of tax revenue. I point all this out to illustrate that sometimes government spending can actually reap a return on that investment.