Updated at 11:04 a. m. , 5/12/23
The leaders of foundations and other philanthropic organizations are not known as embers. But David Egner, the foundation’s veteran leader, recently took inventory of Michigan’s prolonged economic decline and why it happened.
“All signs show that other states like Wisconsin and Ohio are outperforming Michigan on a number of metrics,” Egner said in a recent webinar. “Our ability to remain competitive with other states is seriously threatened. Unfortunately, it’s getting more and more exciting to live anywhere. “except in our beloved Michigan.
Egner, who directs the Ralph C. Wilson Foundation in Detroit, continued, “Michigan’s demanding situations are complex. They are not undeniable and are the result of years of ignorance of the facts. In many ways, we are victims of our own success; From 75 to 100 years of unprecedented economic success.
“And when situations changed, we looked for our position instead of adapting to the circumstances,” he continued. “Then we blame others for our downfall. And we have stubbornly called for a return to the glory days by repeating movements that no longer exist. “work. And that’s how we’ve lived for the past few decades.
Egner’s harsh assessment of Michigan’s competitive position found its way into an online discussion of one of the most comprehensive studies in recent memory of the state’s standing, conducted by the nonpartisan Michigan Citizens Research Council. and Altarum, an Ann Arbor-based think tank.
“Michigan’s Path to a Prosperous Future: Challenges and Opportunities” is a five-part series of reports on Michigan’s demographics, economy and workforce, infrastructure, environment and public services.
Egner didn’t cite specific details, but they’re not much of a mystery to those of us who have lived in Michigan for a few decades.
We have stubbornly clung to the hope that we can recreate a production economy of the 1960s by subsidizing new factories, while other, more disgustingly wealthy states have adapted to an increasingly knowledge-based service economy.
That’s not to say manufacturing is no longer important — it is — and United Auto Workers-represented workers recently achieved gains in a new labor contract with Detroit automakers that will restore a middle-class lifestyle for many of them.
But the production sector will once again employ around a million people, as it did more than 30 years ago. Currently, there are about 600,000 production workers in the state, only about 14 percent of total state employment.
Meanwhile, we have ignored or overlooked investments in measures taken across other states to grow their populations and economies, adding elementary and secondary education, building public transportation, and making communities more attractive to new residents.
During the past 30 years of mostly Republican control of the Legislature and governor’s office, tax cuts and improving the business climate were the centerpieces of Michigan’s efforts to grow jobs and population.
These policymakers have succeeded in the first component of the equation. Michigan citizens have the fifth-lowest state and local tax burden in the country, according to the conservative Tax Foundation.
But being a low-tax state hasn’t made other people flock here or its citizens’ incomes higher than those living in competing states.
Michigan’s population has been stuck at about 10 million people for more than 20 years. And the state has fallen from 11th in the country in personal per capita income in 1950 to 39th last year, according to the CRC/Altarum study and census data.
Michigan’s low-tax strategy “has not been a winning proposition,” said CRC President Eric Lupher.
Gov. Gretchen Whitmer’s administration has been working to change the script with a new strategy that focuses on increased support for education and local governments, and protections for the environment, abortion rights and LGTBQ+ people.
However, some continue to think that more tax cuts are the way forward to achieve a larger population and greater prosperity.
The West Michigan Policy Forum, an organization of business leaders in West Michigan, has proposed abolishing the private source of income taxes to stimulate the state’s population. And an organization called “AxMITax” is looking to propose a measure in the November 2024 election that would abolish all taxes on assets in the state.
What’s that cliché that you do the same thing and expect a different result?
Instead, Michigan will have to take difficult, and likely unpopular, steps to grow and repair its economic fortunes.
There are many troubling trends in the demographics of Michigan’s population. Too many young people are leaving the state, which is aging and has less capacity for the state’s economy.
In 2020, there were 4.5 working-age people per retiree in that state. Over the next 12 years, the ratio is expected to fall to 2.5, according to the CRC/Altarum study.
But there is some good news, should we choose to see it as that. The one component of the state’s population that is growing is international immigration, projected to add 22,000 jobs a year through 2050. Michigan can build on that growth by becoming a more welcoming state.
Policymakers, when promoting expansion policies, want to take into account the fact that Michigan is adapting to diversity and see this as a positive. By 2050, 40% of the state’s workforce will be other people of color, according to the CRC/Altarum study. .
“Now is the time to be relentlessly inclusive,” said Javon Dobbs, communications manager at W. K. Kellogg Foundation, who is African-American, adds that he has noticed many of his schoolmates and family members leaving Michigan in search of greater opportunities and a better quality of life.
And state leaders will have to face the truth by crafting a new technique to revitalize the state, Egner said.
“Until we can build a coalition that actually believes and accepts the facts and realities of where Michigan is, we won’t be able to build solutions that work,” he said.
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by Rick Haglund, Michigan Advance December 5, 2023
Updated at 11:04 a. m. m. , 05/12/23
The leaders of foundations and other philanthropic organizations are not known as embers. But David Egner, the foundation’s veteran leader, recently took inventory of Michigan’s prolonged economic decline and why it happened.
“All signs show that other states like Wisconsin and Ohio are outperforming Michigan on a number of metrics,” Egner said in a recent webinar. “Our ability to remain competitive with other states is seriously threatened. Unfortunately, it’s getting more and more exciting to live anywhere. “except in our beloved Michigan.
Egner, who directs the Ralph C. Wilson Foundation in Detroit, continued, “Michigan’s demanding situations are complex. They are not undeniable and are the result of years of ignorance of the facts. In many ways, we are victims of our own success; From 75 to 100 years of unprecedented economic success.
“And as situations changed, we sought our position rather than adapting to circumstances,” he continued. “Then we blame others for our downfall. And we stubbornly demand a return to the glory days by repeating the moves that stopped working. And that’s how we’ve lived beyond decades.
Egner’s harsh assessment of Michigan’s competitive position came in an online discussion of one of the most comprehensive studies in recent times of the state’s position, conducted by the Michigan Citizens Research Council, a nonpartisan organization, and Altarum, an Ann Arbor-based group.
“Michigan’s Path to a Prosperous Future: Challenges and Opportunities” is a series of reports on Michigan’s demographics, economy and workforce, infrastructure, environment, and public services.
Egner didn’t cite any details, but they’re not exactly a mystery to those of us who have lived in Michigan for a few decades.
We have stubbornly clung to the hope that we can recreate a production economy of the 1960s by subsidizing new factories, while other, more disgustingly wealthy states have adapted to an increasingly knowledge-based service economy.
That’s not to say manufacturing is no longer important — it is — and United Auto Workers-represented workers recently achieved gains in a new labor contract with Detroit automakers that will restore a middle-class lifestyle for many of them.
But the production sector will once again employ around a million people, as it did more than 30 years ago. Currently, there are about 600,000 production workers in the state, only about 14 percent of total state employment.
Meanwhile, we’ve ignored or overlooked investments in the steps other states are taking to grow their populations and economies, adding K-12 education, building public transportation, and making communities more attractive to new residents.
During the more than 30 years of Republican majority in the legislature and the governor’s office, tax cuts and improved business climate have been the centerpieces of Michigan’s efforts to increase employment and population.
These policymakers have succeeded in the first component of the equation. Michigan citizens have the fifth-lowest state and local tax burden in the country, according to the conservative Tax Foundation.
But being a low-tax state hasn’t made other people flock here or its citizens’ incomes higher than those living in competing states.
Michigan’s population has been stagnant at around 10 million for more than 20 years. And the state has gone from 11th in the country in terms of non-public source of revenue consistent with capita in 1950 to 39th last year, according to CRC/Altarum. Examine and census data.
Michigan’s low-tax strategy “has not been a winning proposition,” said CRC President Eric Lupher.
Gov. Gretchen Whitmer’s leadership has set out to replace the script with a new strategy focused on higher education and local government, as well as environmental protection, abortion rights, and LGBTQ people.
However, some continue to think that more tax cuts are the way forward to achieve a larger population and greater prosperity.
The West Michigan Policy Forum, an organization of business leaders in West Michigan, has proposed abolishing the private source of income taxes to stimulate the state’s population. And an organization called “AxMITax” is looking to propose a measure in the November 2024 election that would abolish all taxes on assets in the state.
What’s that cliché that we do the same thing and expect a different result?
Instead, Michigan will have to take difficult, and likely unpopular, steps to grow and repair its economic fortunes.
There are many disturbing trends in the demographics of Michigan’s population. Too many young people are leaving the state, which is aging and less able to cope with the state’s economy.
In 2020, there were 4. 5 working-age retirees in the state. In the next 12 years, this ratio is expected to fall to 2. 5, according to the CRC/Altarum study.
But there’s good news, if we choose to look at it that way. The only developing component of the state’s population is foreign immigration, which is expected to create 22,000 jobs through 2050. Michigan can take advantage of this expansion if it becomes a more welcoming state. .
Policymakers, when promoting expansion policies, will need to keep in mind that Michigan is adapting to a more varied situation and view that as a positive. By 2050, 40% of the state’s workforce will be other people of color, according to the CRC/Altarum study.
“Now is the time to be relentlessly inclusive,” said Javon Dobbs, chief communications officer for the W. K. Kellogg Foundation, who is African-American and adds that he has noticed many of his school friends and family circle leaving Michigan in search of better ones. opportunities. and a higher quality of life.
And state leaders will have to face the truth by crafting a new technique to revitalize the state, Egner said.
“Until we can build a coalition that believes and embraces Michigan’s facts and realities, we may not be able to create answers that work,” he said.
SUPPORT THE NEWS YOU SHARE.
Michigan Advance is part of States Newsroom, a network of grant-backed news bureaus and a coalition of donors as a 501c public charity(3). Michigan Advance maintains its editorial independence. Please contact Editor Susan Demas if you have any questions: info@michiganadvance. com. Follow Michigan Advance on Facebook and Twitter.
Rick Haglund writes the “Micheconomy” column for the Michigan Advance. He’s a former reporter and business columnist for Booth Newspapers, now the MLive Media Group, with extensive experience covering Michigan’s economy and the auto industry. He now works as a freelance writer based in Southeast Michigan.
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