In one bold move, Pfizer proves that "tort-reform" was a fraud, or, Craig DeRoche makes an ass out of himself again

"I see Michigan’s relationship with Pfizer as a unique opportunity to put Michigan at the front of the pack in the field of life sciences and bio-technology. A competitive environment is critical to this effort, and we cannot mistake the importance our tort reform efforts will have in our ability to attract these companies in the future." - Republican Craig DeRoche, former Speaker of the Michigan House Well over a decade ago, "tort reform" was touted as a way to make Michigan more competitive in the business world. So were tax cuts . . . . but I digress. One of these tort reform laws that were enacted by a Republican House and Senate, and then signed into law by Republican Governor John Engler (who bolted from Michigan once his term was over, but I digress again), provided absolute immunity against lawsuits for drug companies whose drugs were approved by the FDA. This immunity, so our politicians said, was a good way to ensure profitability for drug companies and attract them to Michigan, thereby making our economy stronger. More than a decade later, what do we have to show for it? Nothing. Pfizer announced today that it would be closing multiple facilities (at least one large one in Ann Arbor) and laying off thousands. The reason? Yep you guessed it -- lawsuits had nothing to do with it. The reason they are closing down and leaving is because their patents are running out on some of their key drugs, which means they will actually have to compete with generic makers from now on. When they have to actually compete in the marketplace, they can't make enough money. So, they're closing down. Let me get this straight . . . . Even though we are the only state in the union to provide a shield to drug companies, Pfizer can't make it here. All that money they saved by not having to compensate people for the injuries their drugs caused (like for example, recalled drug Bextra), went into the pockets of shareholders. It was not used for research and development. It was not used to keep the company here. Oh, and by the way, less than a decade ago, Pfizer undertook expansion in Ann Arbor based on over $84 Million in tax incentives, apparently provided by the city and the state. Here's what they got: A 20-year credit on the Single Business Tax (SBT) worth an estimated $25.8 million. Pfizer announced its expansion on the same day after the Michigan Economic Development Corp. earlier awarded the credit on the SBT, the only general business tax levied by the state. A 12-year abatement of the six-mill State Education Tax, valued at $10.7 million; and A 12-year abatement on Ann Arbor's property tax, approved the night before Pfizer's announcement and valued at $47.7 million. Where did that money go? In the pockets of shareholders? It apparently won't keep the company here. Hmmmm. Seems to me they took the money, and now they're bolting. Maybe those incentives should have been tied to staying in Ann Arbor, at least for the duration of the incentives. Clearly, if tort reform and tax cuts were the key to a strong economy, Michigan would have the strongest economy in the nation. The fact that we don't says something very important about tax cuts and tort reform. Trouble is, is Lansing listening? UPDATE: As pointed out by a reader, the entire $84 Million did not actually go to Pfizer. Some was tied to reaching certain goals (some of which weren't met), and some was to be credited in the future. My apologies if that misled anyone. My point was (and still is) that Pfizer actually realized tens of millions in benefits that not everyone gets, whether it be via tort reform or tax relief. UPDATE: A new blog creating "a forum for sharing ideas and information about how our community can recover and move forward."