Regular readers of this blog are familiar with my — refreshing, annoying, foolish, naive, take your pick — bullishness on the future of Michigan, especially in light of the challenges facing other states and regions. In summary, I can see the contours of a vibrant economy for Michigan. For the folks in places such as Nevada, Arizona and Florida, the outline is much more hazy.
Along those lines, take a look at this map presenting poverty rate changes by states at The New Republic. Michigan is among the majority of states in the “no significant change” in the time period studied: 2007-08 to 2008-09. Nevada, Arizona and Florida, however, were among the states with significant increases.
Along those lines, take a look at this map presenting poverty rate changes by states at The New Republic. Michigan is among the majority of states in the “no significant change” in the time period studied: 2007-08 to 2008-09. Nevada, Arizona and Florida, however, were among the states with significant increases.
Looking at 13 percent statewide unemployment, massive job losses and foreclosures and housing value declines, it’s hard to not see Michigan as the bull’s eye of the economic crisis. I understand the outlook of anyone who see things here as the worst of the worst.
Michigan did face a double-whammy. First, the state is undergoing a fundamental shift in its economy away from high-wage, low-skill jobs based in the auto industry. Then came the housing bubble, credit crunch and national recession. It was bad piled on top of bad.
But there are signs of where Michigan can move forward. Ford has rebuilt itself without government aid. GM has done it with piles of government help. Each appear to be ready to make steady profits in a North America auto market with total sales of 10 million to 12 million. It’s not pie in the sky to think that Michigan will remain an automotive center for the next two decades.
By contrast, look at this Next American City post commenting on the poverty map. It discusses Arizona in this particular, but could apply to a significant extent to Nevada and Florida: How do you have an economy if your economy was built on building, buying and selling rapidly appreciating houses?
It is increasingly clear that the days of rapid real estate appreciation are over. So what does an Arizona economy hinge on in 2018 or 2025?
Nevada and Florida have tourism, of course. But they have relied heavily on the housing market, too.
Michigan is in a deep hole. Still, it has the potential to build the ladder to climb out of it.
