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So she's back: What's next?

Profs, students: Granholm needs to improve economy

November 9, 2006
Newly re-elected Gov. Jennifer Granholm fires up the crowd late Tuesday night at the Renaissance Center in Detroit. Sens. Carl Levin and newly re-elected Debbie Stabenow spoke earlier in the night. Both Gov. Granholm and Sen. Stabenow are Democrats who beat Republican challengers.

Think of Michigan as an ocean liner or an aircraft carrier.

In that context, Gov. Jennifer Granholm was re-elected as the admiral of the ship, economics Professor Charles Ballard said.

"An admiral can't stand on the bridge and make that thing turn around rapidly," Ballard said, alluding to the race between Dick DeVos and Granholm that focused on finding a solution to Michigan's struggling economy. "It's too big."

It's still one of the foremost issues on the minds of Michigan residents, and Granholm is on the right track, said Ballard, who served on a State News gubernatorial debate panel in October.

"The outlines of everything she can do and wants to do can already be seen," Ballard said. "Even if Alan Greenspan had been the governor of Michigan for the last four years, the economy would still look the same."

That's not to say the governor doesn't have an important role in the economy, Ballard said.

Several student group leaders agree.

Jeff Wiggins, chairman of the MSU College Republicans, said Granholm must foster job creation and attract business to Michigan as much as DeVos would have if elected.

"Now (Granholm) needs to make sure the small businesses have the opportunity to grow," Wiggins said. "She should do that by making sure taxes are based on the success of a business, enabling businesses to grow."

Karissa Chabot, president of the MSU College Democrats, said Granholm has a very aggressive economic plan. She believes Michigan residents will start to see the results of that plan in the next four years.

"She's been working to bring jobs into the state — jobs that will keep young people, college graduates, in the state," Chabot said.

The biggest problem with Michigan's economy is the inability of big automakers like Ford Motor Co. and General Motors Corp. to sell cars at an effective cost, Ballard said.

"The governor can't come in and design a car made by GM or Ford that would make people want to buy it any more than a Camry," Ballard said. "Governor Granholm's plan is to use some of the money we have to invest in high technology."

But James Madison Associate Professor Bryan Ritchie, also a member of the State News debate panel, said Granholm's success in the economy will hinge on taking a different approach.

"We need to get away from jobs as the focus," Ritchie said. "This is a situation in which you've got to create new industries, and we need to get everyone on board with that philosophy. As a Democrat, Granholm is beholden to old ideas of what labor ought to be."

Tuesday's election allowed the Democrats to take a 58-52 majority over the Republicans in the Michigan House of Representatives. The Democratic majority will allow Granholm to push her economic agenda through the Legislature and play a part in turning around the economy, Ballard said.

"It will be easier for (Granholm) to see her initiatives through now that she has the House," Ballard added. "Before she was facing a Republican-dominated Congress, and it was very difficult for her to get anything passed."

Other issues facing Michigan include funding for education and health care, and if Granholm is able to restore the economy, she may be able to fix these other problems as well, Ritchie said.

"A vibrant economy creates a tax base in which there are funds to deal with these issues, but it's kind of a chicken and egg thing," Ritchie said.

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