The Data:
A new report was just released by the Bureau of Economic Analysis saying that Michigan’s per capita consumer spending rose by 3.2% in the most-recent year. This made every Republican in Lansing jump for joy because it's re-election time and an increase in anything certainly does sound good to voters. Especially voters who don’t pay attention to what the report actually says and what other states are doing. The average increase in Michigan between 1997-2012 was 2.7% while the national average for that time period was 4.8%. We aren't doing as good as the national average and that 3.2% increase was actually less than the growth from the preceding year, which means that our growth slowed. We can sum up Michigan's economic growth as being not terribly bad but not terribly good either. This really isn't anything to brag about, but of course, Governor Rick Snyder thinks it is.
What Now?:
We need to look at other states and countries who have updated and progressed with time and technology to see what has worked for them. Michigan has incredible resources and we need to combine those resources with the sectors that are taking off by encouraging those companies to locate here. Looking to the future is much more important than clinging to the past if we are to rise above this current economic crisis. It is imperative that we first analyze which programs cost the most and have the most problems; next we must completely overhaul those systems simply because they aren't working. We have been using band-aid solutions for far too long. It is not only expensive but holds our state back from real progress and growth.
2 Keys:
There are two keys two a thriving economy: incentivizing the right kind of jobs and encouraging education. Putting a stronger focus on the people in this state and reinvesting their tax money back into them will provide long term prosperity in Michigan. Both of these keys focus on reinvesting in the people of Michigan - rather than being stuck within the current web of politics Michigan residents need fresh ideas and new sectors to thrive.
1. The "Right" kind of jobs:
What Michigan needs is an influx of the right kind of jobs - tax credits to GM (if they provide ANY new jobs) only provide $14 per hour jobs whereas tax credits to wind farms would provide $20+ per hour jobs. Meanwhile, GM and Ford have been shirking (econ term of the day: to avoid a responsibility) their tax responsibility for years holding municipalities hostage with threats to shut down factories. Often shutting down the factories later regardless of these promises. These tax credits are costing the state an incredible amount of money and limiting the amount of progress we can make as a state because our budget is so strapped. This is just one example of Michigan politicians being tied to old school politics and everyone else suffering the consequences.
2. Education:
Education is the next step. We can have all of the right kind of jobs, but we must also have a workforce with the proper education and training in order to succeed. In the past several years, the cost of higher education has gone up while the assistance for college students has gone down in all areas. It has become harder for a college student to obtain food stamps - even if they can prove need, they must work 20+ hours on top of their full-time class load in order to qualify regardless of parental involvement. The tax credits and financial aid available for college students has decreased several times in the last 6 years that I've been in school and I have the debt to prove it (and a degree too).
It is important for our representatives to focus their efforts not only on 4-year universities but on trade schools, community colleges, training programs, GED, and most importantly K-12 education. These programs will be pivotal in creating a new, flourishing, economy in Michigan.
Conclusion:
While reality may seem a little depressing, we can take heart in the fact that November 4th each and every one of us has the opportunity to vote for someone new. Someone who will bring Michigan out of the dark ages and into the future. A future that I hope will include happy families with good jobs and educations, people who enjoy their careers, and a much stronger economy.
1. The "Right" kind of jobs:
What Michigan needs is an influx of the right kind of jobs - tax credits to GM (if they provide ANY new jobs) only provide $14 per hour jobs whereas tax credits to wind farms would provide $20+ per hour jobs. Meanwhile, GM and Ford have been shirking (econ term of the day: to avoid a responsibility) their tax responsibility for years holding municipalities hostage with threats to shut down factories. Often shutting down the factories later regardless of these promises. These tax credits are costing the state an incredible amount of money and limiting the amount of progress we can make as a state because our budget is so strapped. This is just one example of Michigan politicians being tied to old school politics and everyone else suffering the consequences.
Education is the next step. We can have all of the right kind of jobs, but we must also have a workforce with the proper education and training in order to succeed. In the past several years, the cost of higher education has gone up while the assistance for college students has gone down in all areas. It has become harder for a college student to obtain food stamps - even if they can prove need, they must work 20+ hours on top of their full-time class load in order to qualify regardless of parental involvement. The tax credits and financial aid available for college students has decreased several times in the last 6 years that I've been in school and I have the debt to prove it (and a degree too).
It is important for our representatives to focus their efforts not only on 4-year universities but on trade schools, community colleges, training programs, GED, and most importantly K-12 education. These programs will be pivotal in creating a new, flourishing, economy in Michigan.
"A strong economy begins with a strong, well-educated workforce."
While reality may seem a little depressing, we can take heart in the fact that November 4th each and every one of us has the opportunity to vote for someone new. Someone who will bring Michigan out of the dark ages and into the future. A future that I hope will include happy families with good jobs and educations, people who enjoy their careers, and a much stronger economy.
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