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For most of the 20th century, Michigan was a growth state. We were at or near the top of all the states in jobs, income and population growth. Detroit was for a time the wealthiest city in America.
But for most of the past 60 years, Michigan has fallen behind on most state rankings. Aside from some spurts in the 1990s and 2010s, we have lagged our neighbors and the rest of the country on most measurements of economic well-being.
And in recent years, most states saw stronger growth. Michigan is near the bottom when it comes to jobs, income and population growth since the COVID-19 lockdowns.
Many people blame the weather. It’s an easy excuse, but we’ve always had cold winters, and Idaho, which also has cold winters, is a growth leader in the United States. Warmer weather helps, but beautiful and temperate California has been shedding population.
There are many reasons, but the main reason is poor public policy. Natural resources, including favorable weather, help. But the state needs a better policy environment: a limited government that keeps spending and debt under control. Economic freedom that allows competition among businesses and entrepreneurs without favoritism. Regulations that focus on protecting the public while being constantly evaluated for their negative effects.
Energy and electricity: “Energy policy should be neutral about generation sources. The state should repeal mandates and special subsidies and tax provisions for all forms of energy. Producers should compete on an open, level playing field. Michigan needs a reliable grid, powered by steady energy sources. Citizens and businesses need a competitive system where they can freely choose their own electricity providers.”
Education: “Michigan needs to eliminate its discriminatory Blaine Amendment. If our courts will not throw out this outdated, bigoted law, voters must repeal it with a constitutional amendment. This would open the door to choice in education for Michigan families. Twenty-two states have expanded school choice since the pandemic, but not Michigan. The money should follow the student whether the student attends a public, private, charter or trade school, and it should be available for homeschooling and tutoring, too.”
Taxes: “Michigan must eliminate corporate welfare, use the money to cut the income tax in half, and slowly phase it out altogether. The highest-growth states have no personal income tax. Michigan should work toward that standard.”
Housing: “Michigan needs to speed up the rate of processing permits at the state and local level. We should eliminate many licensing requirements for builders and workers, not add new mandates. And lawmakers need to pursue statewide zoning reform. Restrictive zoning laws have caused skyrocketing builders’ costs and often eliminated building opportunities entirely. State officials should prevent zoning rules that have nothing to do with public safety, like minimum home sizes, mandatory parking spots, setback limits and aesthetic requirements.”
Labor: “Michigan and the country need labor laws that give workers choice and require unions to compete. This means a repeal of the 1931 Davis-Bacon Act and prevailing wage laws. These laws eliminate competition and mandate union wages regardless of market demand. Right-to-work laws, which give private sector workers the choice to support a union, should become the norm. States should adopt opt-in policies for all government employees, including teachers, state workers, police and firefighters. They should know that they have a constitutional right not to pay a union so they can make informed decisions.”
Spending and Debt: “Michigan’s budget should not increase faster than population and inflation. Extra revenue should go toward paying down our $50 billion in debt owed to the state’s retirees or be used to phase out the income tax.”
For decades, and especially in recent years, Michigan’s focus has been on short-term fixes and flashy projects that garner press releases but generate little economic development. Policymakers have been busy handing out favors to some businesses and industries, hiking income taxes, radically increasing spending and establishing quasi-monopolies. Growth states, by contrast, have been flattening the tax code, streamlining regulations and rapidly building housing.
With your help, we will shift the Overton Window of political possibilities away from Big Labor, Big Business and Big Government and toward the people who want to work, earn, live and pursue happiness in Michigan.
