The Michigan Squeeze

October 1st, 2007
By T-STEEL, Site Administrator

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Ed Morrissey rips the words right out of my brain concerning Michigan’s new budget/what in the…/disaster:

The economic woes of Michigan appear ready to worsen, thanks to a budget agreement reached this morning as the state government began shutting down. Michigan residents will see their taxes increase by over a billion dollars, further burdening the decreasing purchasing power of its residents, as the legislature only sliced less than a third of that from their spending plans…

I’ve been a Michigan resident my entire life. Among the Michiganians, there is an aura of despair (especially here in southeast Michigan) that can be sliced and served with a steaming cup of asphalt. The guts of the Michigan economy (the Big 3 automakers) are basically gone. All the businesses that supported the Big 3, from suppliers to the 24-hour restaurants serving three shifts of proud, hard-working automakers are gone or suffering. And the Michigan Legislature (led by the Democrats) decides to squeeze the citizens even more. Shameful and sickening. More from Ed Morrissey:

Note, too, that the Michigan government solved the problem by a 3:1 ratio of sacrifice. They increased taxes by over $1.4 billion, thanks to increases in both income and sales taxes that go into effect immediately. They only managed to shave $440 million off of their own budget. Given that the state budget planned for $42.6 billion in spending for FY2007, this represents a whopping 1% decrease in state spending. It hardly seems as though Michigan lawmakers even cracked the books of their budget to look for other opportunities for savings.

Once again, Michigan lawmakers see the citizens as the way to overcome their excesses. In my previous post here titled “Is a state bail-out feasible?” a TMV reader (DLS) made some comments that hit home:

There should be no federal bailout of Michigan nor any of the other states that would be led to follow Michigan promptly if Michigan were to receive a bailout. There also is no need for any new, grand redistribution scheme (”equalization payments” in Canada). The solution has already been alluded to, namely that Michigan needs to transform itself, shed the repellent Blue (Cyanide) Nation legacy that is killing it. Long-term movement of the US population is to the south and west, and Michigan with its winters faces a climatic disadvantage; it must be more friendly to business and to households — including in the tax and regulation realms — to encourage people to remain in Michigan, or (surprising as it may seem to nearly everybody in this country, and outside it) even to relocate to Michigan and subject the state to economic and population growth. The state has natural amenities that can be enjoyed year-round by residents who can tolerate winter weather, more than many other Snow and Rust Belt states; what matters is the economic and political problems and the need to correct them.

While I disagree with not having any federal funds made available for that blast crater in the place of Michigan’s economy and the “Blue (Cyanide) Nation legacy” comment (I have equal disdain for Michigan Democrats and Republicans), the other points are rock-solid on-point. Trying to start and maintain a small business in Michigan is difficult at best. If the taxes don’t kill you, the regulations will. And our largest city, Detroit, is just a bastion of cronyism, terrible management, and bad attitude. Michigan lawmakers’ decision to squeeze we Michiganians will just cause many of us, including myself, to leave in revolt and out of necessity.




This entry was posted on Monday, October 1st, 2007 at 7:56 am and is filed under USA, North America, State Politics, Economy, Domestic Programs, Politics. You can leave a response, or trackback from your own site.

 
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