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The State of Michigan has been going through a great deal of economic woes. The recent economic recession has only exacerbated the already declining employment and investment rates plaguing the State for the past decade, thereby resulting in a recent exodus from the major cities.
Michigan’s current unemployment rate is 10.3% where the national average is 9.1%. According to the Department of Management & Budget, 9,000 people lost there jobs in May 2011. Although this is a slight increase from the previous month, cities like Detroit and Ann Arbor have recently experienced a 56% population emigration rate. The State has already lost two congressional sets according to the Census reapportionment process.
The former Governor of Michigan, Jennifer Granholm, did some fine work promoting the manufacturing of lithium ion batteries in the State, but many residents felt her efforts were "too little, too late." The residents who ended up losing their jobs in the auto industry have had to take on two or three jobs within the service sector in order to have a living wage. The population loss in the State has even hit once-vibrant communities such as Battle Creek. The debate on how to remedy the population loss and economic stagnation in the State continues to rage on.
There are people on one side of the issue who feel that the United States needs a national manufacturing strategy, one that would presumably benefit Michigan. There are other people who think that there is a definite need to convert the Michigan into a ‘right to work’ state in order to increase its competitiveness.
The proponents of this say this will only make the State competitive with Texas and other States, but also on a global scale. People still think there will have to be tax incentives and subsidies made available in order to attract different companies to the State. The emerging industries out there, such as solar energy and wind power, are industries that would be most likely to receive these incentives.
Some people are questioning whether the current economic development in the State of Michigan is committed to the concept of using these incentive packages. The Governor of Michigan Rick Snyder may have not given a company like Fronius Energy enough reason to move into the State because the company decided to locate in Indiana following a period of negotiation.
People are still blaming the high corporate tax in Michigan as a significant reason for companies leaving the State. People are unable to maintain employment in cities like Detroit because corporations are simply not staying there. This fact is ringing harshly true within Detroit’s real estate market. The number of foreclosures is up by twelve percent in compared to last year’s figures. Clergy in the city of Detroit and around the State are publicly begging banks to keep residents out of foreclosure. The banks are largely unresponsive to these requests.
There are officials around the State who have publicly come out in favor of some form of foreclosure moratorium. Michigan, and specifically Detroit, should keep their heads up and look towards the future with a positive outlook. The former Chief Executive Officer of General Electric Jack Welch had positive things to say about the reforms within the auto industry and the larger reforms within the city of Detroit. The comments that Welch gave are enough of a reason for citizens to keep their hopes up. Detroit and Michigan as a whole are expected to make a complete recovery. 
Julie Gallagher has served as a speechwriter and analyst for numerous political personalities, Members of Congress, and policy centers. She has studied international relations at University of Chicago and had been involved in the Teach for America program.
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