Friday, December 5, 2008

Editorial: Act now to make Michigan competitive

The Detroit News
Michigan is not competitive and hasn't been for years. This state preceded the nation in recession and is in danger of remaining mired in recession after the rest of the nation recovers. Yet we see no urgency from our political leaders in taking steps to help the state become more competitive.

This is a standard pattern. The steep decline in Michigan's manufacturing sector became apparent early in this century, but from the 2001 through the 2006 budget year, state officials papered over government deficits with one-time revenues and accounting gimmicks to the tune of nearly $7 billion. In 2007, the state, in the midst of a severe economic downturn, raised taxes.

Now it is confronting a current year deficit that could reach $1 billion, and Gov. Jennifer Granholm says promised federal revenues could ease the need to make tough budget cuts. In other words, the problem is again being kicked down the road.
This delay in confronting the state's structural spending will cost hundreds of millions of additional dollars when Michigan's built-in deficit is finally confronted.

And Michigan's citizens will lose out on desperately needed job opportunities as firms, seeing the state's continued refusal to confront its problems and instead relying on higher taxes and one-time fixes, decide to invest elsewhere.

This simply can't continue. FULL STORY.

Wile everyone is screaming about making Mchigan Competitive, they ignore easy solutions. If the auto makers want to sell cars, than they should install the new carburetor that gets 100 mpg while developing their green cars. So why don't they? Because the state and federal greedy governments are afraid of losing more in gas taxes.

It seems that Lansing has the same mentality as Washington and can't figure out that if people get better gas millage they will drive more and in the end, by gas. They will also line up to buy the new cars putting many back to work.

It will also free up the tourist industry because people won't be afraid to drive to Michigan to vacation. See how that works? But don't let this secret get to the legislators, someone just might expect them to be living, breathing, bodies with a brain.

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