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Lefty48197 Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jul-26-06 09:02 PM
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Understanding Michigan's economy
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Recent history has shown that Michigan has a predictable pattern during national economic recessions. One predictable truth is that when the nation gets an economic "cold", Michigan gets the "flu". i.e. moderate national recessions hit Michigan hard. Such was the case in the late 1970's and early 1980's when the nation went into a pretty bad recession, but Michigan entered a near DEPRESSION. Detroit's unemployment was like 25%. Most of the major cities in Michigan with large African-American populations had unemployment rates between 20 and 30%. That was true of Saginaw, Pontiac, Flint, Benton Harbor, Muskegon in addition to Detroit.

The reason Michigan takes such an economic beating is because of our dependence on the auto industry. When the nation slips into a recession, even one that's not that bad, one of the first things people do is forego the purchase of a new automobile. They make the old ones last. Repair costs are probably cheaper than new payments, especially if the old one's paid off.

That's why Michigan almost always has a higher unemployment rate than the national average, during recessions.

Dick DeVos and the Republicans don't want you to know that.

They want you to think that Michigan's current economic problems are Governor Granholm's fault. Nevermind the fact that it was her that had to provide the political leadership to take care of the budget mess that John Engler and his Republican legislature left her. In spite of continued Republican control of the legislature, Governor Granholm made the tough choices in her budget proposal, that resulted in Michigan's current budget solvency.

Since they passed her budget, the Republicans have tried to stone-wall every single one of her proposals. They did so, because they did not want her to succeed. They didn't want her to create jobs improving the infrastructure, they didn't want her bringing jobs to Michigan through Michigan Economic Development Grants, and they sure didn't want her improving the living and working conditions of Michigan's working class.

Now they're trying to blame Governor Granholm for not fixing the problems.

The Republicans also don't want you to know that Michigan is always the last state to pull out of a recession. When the nation first starts to pull out of a recession, people are more interested in paying off their bills, building savings accounts, and maybe buying a few small luxuries that they wouldn't buy during times of economic uncertainty. What they don't do is rush right out and spend $25,000 on a new vehicle. Those major purchases are put off until six months, or one year, or two years after the recessions end.

That's why Michigan is always the last state to pull out of a recession.

The Republicans don't want you to know that either.

Please don't let Dick DeVos' campaign mislead you, or anybody else.
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