Why We Love The Gov

Cross-posted at BFM

I came across an interesting LSJ article this morning, which underscored some of the points we’ve been making at BFM.

First I’m going to say how irritated I am that it’s an LSJ article … I’m still mad at them.  So, I’m going to link the article because I’m referencing it, but I’m asking that you ignore their ads and not click on any links there.  In fact if you have to interact with the site at all, just leave a little graffiti in their forums, as to what jerks they are.  And if you read the article, pause between paragraphs to curse the LSJ and all that they stand for.

Thanks.

Ok, now for the substance of the article …

The article is Michigan: Good news starting to balance the bad, by Phil Power, and it talks about what may be a light at the end of the tunnel.

Power doesn’t make it easy on those of us looking for good news … first he takes us through the bad news … the job loss, the increase in unemployment, and the decline in Michigan’s GDP.  Finally, he mentions that a recent poll of Michigan residents  indicated that 300,000 to 600,000 of us are thinking about leaving. 

But there’s some good news in there … Power quotes Dana Johnson, the economic chief at Comerica:

Michigan’s economic weakness was confined to just three industries – manufacturing, construction and government. They play a disproportionate role in this state’s “misery index.” Together, those three sectors accounted for more than 80 per cent of Michigan’s net declines from 2003 to 2006, even though they only made up around 35 per cent of the state’s GDP.

That makes sense … manufacturing has been exported, building is down, and government is under attack.

Power does see some good news here, in that the majority of people who are thinking of leaving the state are “mostly less-educated, less-skilled and lower-earning.”

For example, 9 percent of those asked from Macomb County (where only 21 percent of residents have a bachelor’s degree or higher) said they felt certain they would move out of Michigan. By contrast, no one surveyed from Oakland County (where 41 percent of residents have a BA or higher) was planning to leave. College kids are, by and large, planning to stay.

The survey found only 7 percent of those with college degrees planning to fly. Meanwhile, those holding only high school diplomas were twice as likely to leave. Meanwhile, 18 percent of those with no degree of any kind said they would be willing to move. Nor is the solid middle class planning to head to Manitoba. Just 3 percent of those earning between $75,000 and $100,000 were planning on leaving. But by contrast, those earning between $25,000 and $50,000 were six times as likely to report that they are discouraged and looking for sunnier pastures.

Of course, we don’t want anyone to leave.  If that many people really left, Michigan could end up losing a Congressional seat.  More importantly, families and friends would be separated.

But let’s get back to the economy …

Power concludes his article by citing Tom Ivacko, of the University of Michigan’s CLOSUP.  Ivacko prepared a CLOSUP report that concludes:

“Whereas the overwhelmingly negative portrayal of Michigan’s economy over the last half-decade has resulted in a public sense of gloom and self-doubt, this report presents evidence of numerous positive developments occurring in the state economy… While there are certainly long-term struggles yet to come, there are also signs that Michigan is navigating an historic transformation between economic models, as its former industrial foundation gives way to a growing post-industrial knowledge economy.”

Ivacko supports his conclusion with data from U.S. Bureau of Labor Statistics that shows that Michigan’s economy is growing in the ‘knowledge sectors’ … “financial services, professional and business services, education and health services and so on.”  He further states that Michigan’s economy is becoming more diversified and balanced.

That does sound like good news.

Now let’s take a look at a few of the things we’ve reported here on BFM, that may shed some light on things …

• Renewable Fuels Commission calls for $200 million investment — Governor Granholm’s 2006 bi-partisan legislation created the commission to study renewable fuels.  Alternative energy is one of the foundations of her economic plan.
• Innovation Granholm — takes a look at look at the Governor’s entrepreneurial spirit in her jobs plan and her approach to the economy.  It also maps her jobs plan to the innovation initiative of the National Governors Association and mentions a few of her successes.
• Granholm leadership on energy is paying off — another article on alternative energy, the Granholm jobs plan, and an example of success.  More economic diversification here, with the creation of Harvest Wind Farms and their contract with Wolverine Power.
• Granholm statement on stem cell research — The Governor reacts to Bush’s veto on stem cell research, and asks that you support the Democratic initiative to pursue this ground-breaking science.  Investment in this research is good for our economy, and it holds the promise of life for so many people.
• State cuts lead to reduced adult ed in Jackson Co – just a tragic example of what Senate obstructionism has done.  Are the people who need these services going to be able to participate in the knowledge economy?

And the grandaddy of them all …

• Bishop Obstructionism Based On Governor Granholm’s Economic Plan — A remarkable demonstration of how Mike Bishop is working to destroy the Governor’s economic plan. 

A plan that we’ve already demonstrated, is working.

Yeah, we here at BFM know that we show some pretty serious Gov love at times.  Do you see why? 

Because she’s right. 

She’s right.

You can download Ivacko’s CLOSUP report, in pdf format, here:  Policy Report on Michigan’s Economic Transition: Toward a Knowledge Economy.

And re-visit Mike Bishop’s destructive, self-serving list of demands here:  Bishop’s List of Demands