Posted on 09/03/2014 12:27:42 PM PDT by MichCapCon
They 7th edition of “Rich States, Poor States” was released recently and it ranks Michigan 12th best among the 50 states for its “economic outlook” based on 15 public policy variables, such as tax, business and labor policies. The higher position may signal better economic times ahead for Michigan.
This is the highest rank achieved by the Great Lake State since the index’s creation. Since 2009, Michigan has steadily moved from near the bottom (34th) to where it is now.
The index is created from 15 variables that the authors believe contribute to a states’ economic well-being: marginal personal tax rates; marginal corporate tax rates; personal income tax progressivity; property tax burden; sales tax burden; remaining tax burden; estate tax levy (if any); recent tax changes; debt service as a share of tax revenue; public employees per 10,000 of state population; the state’s liability system; state minimum wages; average worker’s compensation costs; whether or not a state has a right-to-work law and whether or not a state maintains expenditure limits like the Headlee Amendment.
The good news is that these variables — measured through 2012 — rank Michigan relatively high for future economic performance. The bad news is that the authors still rank Michigan low (dead last, actually) for actual performance based on three major metrics: state gross domestic product, domestic migration and non-farm payroll employment over the previous 10 years.
These measures will keep Michigan ranked very low in the index’s ranking due to the state’s performance during the 2000-2009 time frame. As Mackinac Center analysts have pointed out repeatedly, Michigan was the only state in the union to have negative state GDP and a net loss of population during the past full decade. During that time period, Michigan was adopting several harmful policies: large tax hikes, a failure to truly balance its budget, paying more and more for public employees and grappling with forced unionization.
The good news is that our outlook is encouraging. In addition, “Rich States, Poor States” is not the only index that ranks performance in vital policy variables. The Tax Foundation’s Business Tax Climate Index has also noted Michigan’s policy improvements in recent years and that, too, bodes well for the state’s future.
There have been some recent set-backs, but Michigan has been steadily improving its economic policies. Lawmakers should keep it up.
I’m sure that the first thing that a business wants to do is say...”Hey, lets move to Detroit!!”
I did, just recently. There’s jobs to be had out here.
Actually a move to Detroit is a smart move for large businesses. Its a whole lot cheaper to do business from Detroit than it is to do business to from NY or Boston.
Detroit is still to expensive for small businesses to be inside the city but that will change.
The Granholm (D) administration was an absolute disaster economically. She was also in on the SIEU dues theft scheme.
I told my children to get the hell out of this state when they get out of college. Hopefully, they take my advice.
I wouldn't even drive through real "death triangle" of Flint, Detroit and Lansing when I was up that way this summer. It's the only part of the country that I can say honestly competes with Odessa, Texas
Actually, companies like JP Morgan, Ernst & Young, Quicken loans etc have moved a lot of people to Detroit in recent years. Canada has been investing big bucks too. Its the 2nd busiest trade crossing on the continent and it abuts the Canadian manufacturing region.
I’ve been at FR long enough to know better than to expect FReepers to know what they’re talking about when they flap their gums about Detroit.
Yeah , I’m sure Detroit is really nice. It is just a perception problem. It’s like I told my wife about Odessa before we moved there from Orlando, Florida for “two years of hell”.
I never said it was nice, that’s a long way off but there are good things happening there that don’t get much attention.
The big financial firms are finding it advantageous simply because its cheaper than NY, Boston or Chicago. They’re attracting their employees from NY based on the cheaper cost of living in Detroit. If you make $100 grand in NY its still tough to get by. If you make that same $100 grand in Detroit its like having your pay tripled. The companies are encouraging their employees to concentrate in neighborhoods together and paying for private security. Plus in Detroit you can carry concealed or openly pretty much everywhere and don’t have nannies telling you what to eat and drink.
The violent crime rate is down some 30% this year from last year because so many do carry and they’ve got a police chief who openly encourages people to carry for their own protection.
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