Michigan Can Do More for Social Mobility, Mackinac Center, Archbridge Institute Find

Social mobility does not get much attention from free-market think tanks, and it should. That’s why the Mackinac Center and the Archbridge Institute jointly published a report on social mobility in Michigan.

What is social mobility? It’s the right to use your God- given talents to pursue a meaningful life for yourself and family. Thomas Jefferson called it “the pursuit of happiness.” It is something we often take for granted in the Land of the Free, but it is increasingly under threat from the seemingly endless list of rules, mandates and dictates issued by local, state and federal governments.

The Archbridge Institute created a state ranking of social mobility in 2023. It compared states based on their regulations, taxes, business dynamism, legal systems, education, skill development, community involvement and charitable activities, among other things. The five highest-ranking states were Utah, Minnesota, Montana, Delaware and Vermont.

Anyone who ranks states based on complex policies risks exaggerating minor differences. But Archbridge’s “Social Mobility Index in the 50 States” is reliably constructed. Its rankings are tightly correlated with poverty rates: The more social mobility in a state, the less poverty it has. This is what basic economic theory would predict.

Michigan ranked 30th — not bad, but showing room for improvement. The state has fairly reasonable regulations for land use, and it scored well on overall regulatory restrictions. It also posted a high ranking on measures concerning the rule of law and predatory state behavior, such as civil asset forfeiture and government fines and fees.

The state ranked poorly on corporate tax policies and property tax rates. Michigan’s neighbors bested us on these measures, except Illinois. Also troubling was the state’s ranking in business dynamism. Michigan is home to fewer business startups than other states. Policymakers should reform state laws and regulations to make it easier to start and build a business here.

The Archbridge Institute’s new Social Mobility Index provides a new lens to assess how well states are helping foster the “pursuit of happiness.” Michigan has a long way to go, but thanks to this report, we have a clear blueprint for making progress.