Tuesday, September 24, 2024

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Cooperation needed to help economy

Reviewing the economic situation in Michigan, state residents may find themselves with one primary inquiry: How did it come to be this bad?

Sure, in the past we had the boom of the auto industry on our side.

But we have been relying on the auto industry for far too long. Not to mention the fact that we are falling behind foreign automakers in the competitive market.

The state legislature needs to recognize this by diversifying our economy and attracting new businesses to the state.

The problem here lies in the continuous downward spiral of our economic climate.

To deal with the $700 million deficit and the elimination of the Single Business Tax, numerous cuts have been made. These include cuts to public art organizations as well as the state's education systems.

Education is the foundation of achieving an eventual market success.

With the reduced availability of educated employees in the workforce, already established Michigan companies will falter and new companies will make the smart business decision to stay out of the state.

Google Inc. took up residence in Ann Arbor last fall, which was a step in the right direction.

The revenue and jobs the worldwide conglomerate brought were, no doubt, a positive for the state. However, we cannot sit back and pat ourselves on the back for this one win for too long.

Michigan ranks last in the entire nation in the fields of personal income growth, employment growth and in the Index of Economic Momentum. The state also has the highest unemployment rate.

So, how did it come to be this bad?

Politicians appear to be too afraid to set any sort of long-term goal for the state.

Elected officials know they will only serve the public for a finite period and choose to focus on security for the duration of their terms.

The current cuts and taxes are a short-term Band-Aid placed over the gunshot wound the state is suffering from.

The two-party system has pitted politicians against one another, rather than for the well-being of the state.

They continue to play the blame game — Republicans blaming Gov. Jennifer Granholm for the state's problems, Granholm's blaming the previous legislature.

It is far too immature to act like that and to be too self-concerned to create a long-term plan when one is so desperately needed.

Bipartisan action is needed. Granholm and state Republicans need to set aside their historically opposite ideals and set up a clearly-defined, long-term process to bring Michigan up from the bottom of the barrel.

Our state's economic injuries are not minor and cannot be fixed solely by cutting education funding.

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