Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

Skip to comments.

Michigan Has Third Largest GDP Growth Since Recession
Michigan Capitol Confidential ^ | 7/5/2015 | Tom Gantert

Posted on 07/07/2015 9:09:08 AM PDT by MichCapCon

Michigan has achieved another economic milestone on the road to establishing a reputation as the comeback state. From 2009 to 2014, the state experienced the third-highest percentage increase in state gross domestic product (GDP). The state was surpassed by just two states, both with heavy exposure to a national oil drilling boom.

A widely used measure of the size of an economy, GDP is defined as the monetary value of all the finished goods and services produced within a state or nation during a specific period of time.

Michigan’s GDP has expanded 13.8 percent from 2009 to 2014. This far exceeds the growth rate of the nation as a whole, which experienced a modest 5.9 percent increase in GDP, historically low for a period following a deep recession. North Dakota led the nation with a 35.6 percent GDP rise, and Texas was second at 15.5 percent.

“North Dakota and Texas's growth is undoubtedly due to the oil boom that occurred over the recent years,” said Christopher Douglas, an associate professor in economics at the University of Michigan-Flint. “It will be interesting to see how these numbers change now that oil prices have hit $60/barrel.”

Douglas, a member of the Mackinac Center's board of scholars, said he thought that Gov. Rick Snyder’s business tax reforms, the state government not being shut down for four-plus years and the rebound of the auto industry all played a part in the increase in GDP.

University of Michigan economist Don Grimes said the increase was “very impressive for Michigan.” He said he suspected if the increase in GDP associated with mining oil and natural gas was taken out of the equation, the gap between Michigan and North Dakota and Texas would narrow substantially.

There were seven states that had negative GDP growth from 2009 to 2014.

“As the 2000 recession showed, states are not guaranteed a recovery. So it’s nice to see Michigan bounce back from one,” said James Hohman, the assistant director of fiscal policy at the Mackinac Center for Public Policy.


TOPICS: Government
KEYWORDS: economy; gdp; michigan

1 posted on 07/07/2015 9:09:08 AM PDT by MichCapCon
[ Post Reply | Private Reply | View Replies]

To: MichCapCon

...and if Obama hadn’t interfered with the marketplace by “saving” the auto industry, that growth would have been greater...


2 posted on 07/07/2015 10:42:44 AM PDT by demmayhem
[ Post Reply | Private Reply | To 1 | View Replies]

To: demmayhem

That is uncertain. So much of Michigan’s economy is tied to autos that a lot of suppliers would have gone belly-up.


3 posted on 07/07/2015 1:34:17 PM PDT by 1rudeboy
[ Post Reply | Private Reply | To 2 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson